中级会计学知识论述(英文版)(ppt 50页).ppt

On the date of acquisition, Masterwear, the bond issuer, will debit cash for $735,533, credit Premium on bonds payable for $35,533, and credit bonds payable for $700,000. At the same time, United (the investor in the bonds) will debit investment in bonds for $700,000, debit Premium on bond investment for $35,533, and credit cash for $735,533. Bonds sold at a premium are sold at an amount above face amount, and bonds sold at a discount are sold at an amount less that face amount. The amortization process writes up (or down) to maturity over the life of the bond. At maturity, the liability for