Chapter 22 – Long-Term Bonds
Chapter 22
Long-Term Bonds
1. The Bonds Payable account would be credited for $104,000 to record the issuance of
$100,000 par value, 10 percent bonds at a market price of 104.
2. When a corporation pays bond interest, Bond Interest Expense is debited.
3. Amortizing bond premiums over the period from the issue date to the maturity date reduces
bond interest expense shown on the income statement.
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21. Bond interest expense usually appears in the _____________________________ section
of the income statement.
22. To pay interest on ____________________ bonds, the corporation must keep a record of
the name of each bondholder.
23. When bonds are issued at a price below face value, the Discount on Bonds Payable
account is ____________________ for the difference between the issue price and the face
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36. When bonds mature, a corporation will pay the bondholders
37. If bonds are issued for a price below their face value, the bond discount should be
38. A corporation paid $104,000 to retire bonds with a face value of $100,000 and an
unamortized premium balance of $3,000. The entry to record the early retirement of the bonds
will include the recognition of a loss of
