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I understand bonds fairly well, but am hung up on one small portion.
My understanding is as follows:
Bonds Payable @ yr 1 = PV of Principal + Payments at coupon rate
Interest Payable = @ coupon rate
Interest Exp = @ coupon rate +disc. amort -prem. amort
Principal Payment = due in full @ maturityNow if the bond matures 12/31 of Year 10, and i’m reporting at 12/31 Year 9, is the principal reclassified as a Current Liability @ 12/31 Year 9 since it’s due within 12mo of the BS date?
Also, is there ever a time where the bond payments will include a portion of the principal? My understanding is that it is not paid concurrently with interest payments; and only Trade Notes Payable factors in the principal payments with the interest payments on the note.
Any help is appreciated!
AUD - 76
BEC - 75
FAR - 80
REG - 77scoring > 75 means I studied too hard, right?
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