Exam 22: Long-Term Bonds

To pay interest on ____________________ bonds,the corporation must keep a record of the name of each bondholder.

A company issued 6%,10 year bonds with a par value of $500,000 on April 1.Interest is payable each Sept.30 and March 31.The journal entry to accrue interest expense as of December 31 is:

Unsecured Bonds:

Retained earnings may be appropriated for bond retirement by order of the board of directors,by the bond contract,or by vote of the shareholders.

The issuing corporation ___________________ the bond discount from the date of issue to the maturity date.Here a bond issued at a discount will increases the bond interest expense shown on the income statement.