To see each answer, press or click on the blue "Unscramble" button. If you have difficulty answering the following questions, learn more about this topic by reading our Bonds Payable (Explanation).
5. If a bond is issued for less than its face value, ________ on Bonds Payable is recorded.
DISCOUNT OCINSUDT6. If a bond is issued for more than its face value, ___________ on Bonds Payable is recorded.
PREMIUM RMPEIUM7. The market interest rate and the yield-to-maturity should be the same as the __________ interest rate.
EFFECTIVE TECVIEFFE8. A bond __________ fund is an asset restricted for the retirement of bonds.
SINKING NGSINKI10. The _________________ of the premium on bonds payable will reduce interest expense.
AMORTIZATION MORIOAINTZAT13. Bondholders' claims will come ahead of the claims of ___________________ if a corporation is liquidated.
STOCKHOLDERS ROSDOKTELHCS14. If bonds are sold between interest dates, the buyer will pay the seller any _________ interest.
ACCRUED RCDCAUE15. A bond sinking fund is reported in this section of the balance sheet.
INVESTMENTS EVTNTSSEINM16. The amortization of _________ on Bonds Payable will result in more bond interest expense than the cash amount of interest paid.
DISCOUNT DCUSITON17. __________ on Bonds Payable will cause the carrying value of the bonds to be greater than the face value.
PREMIUM RUEIMPM18. In present value terms, a bond's interest payments form an ordinary __________.
ANNUITY NYTINAU19. Most bonds are __________ by the issuing corporation at a price specified in the bond's indenture.
CALLABLE ECBLALLA20. When the amount of amortization of discount or premium on bonds payable is the same amount each year, it is referred to as ______________-line amortization.
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