
Price the bond at a discount by converting to semiannual terms, compute present value of principal and interest to derive proceeds of 741,116 and a 58,884 discount.
Apply the effective interest method to calculate interest expense and amortize the premium on bonds issued at a premium, updating the carry value toward the face amount with semiannual payments.
Apply the effective interest method to calculate net bonds payable, bond carry value, interest expense, and discount amortization from the year 1 issuance example.
Learn how convertible bonds work, why the conversion feature is non detachable and ignored at issuance, and how convertible bonds convert to stock using Pierce's example.
Explore accounting for bonds with detachable warrants, allocate proceeds by proportionate or incremental methods based on fair value, and record issuance and warrant exercises.
Learn how investors record bond purchases with mirror issuer entries, including investment in bonds, the discount, amortization, and the year-end carry value.
Apply the effective interest method to amortize the 28,700 premium, resulting in a 23,709 premium carry value after the first interest payment.
In this course, learn all of the important calculations and journal entries for Bonds.
The AICPA wants you to know certain rules and points related to Bonds, such as pricing a bond, the effective interest method, bond issue costs, convertible bonds and bonds with detachable warrants. All of these will be broken down into easy-to-follow steps.
Each video is less than 10 minutes and covers an important rule or learning point using recent, actual CPA Exam questions. There's no better way to practice for the test than to review exam questions issued by the test makers themselves. With these short and engaging videos, you can get your studying done in a coffee break.
If you're looking for clarity on Bonds for FAR, this is it!