Following on from our article that looked at the discount side, in today's accounting tutorial series we look at the journal entry and calculations required when a premium on a bonds payable issue is...
Tag: straight-line method
In today's accounting tutorial, we look into how a discount can arise on a bonds payable issuance and, in particular, the calculations and journal entry. We will cover what these bonds are used for,...
The effective interest method enables us to better reflect a firm's borrowing costs. A full example with journal entries is provided to help explain what is involved.