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 OUNCTISD6. If a bond is issued for more than its face value, ___________ on Bonds Payable is recorded.
PREMIUM PUIREMM7. The market interest rate and the yield-to-maturity should be the same as the __________ interest rate.
EFFECTIVE EFFTICVEE8. A bond __________ fund is an asset restricted for the retirement of bonds.
SINKING SNIGINK10. The _________________ of the premium on bonds payable will reduce interest expense.
AMORTIZATION OTNAAOZIIRTM13. Bondholders' claims will come ahead of the claims of ___________________ if a corporation is liquidated.
STOCKHOLDERS LOKTDROCSHES14. If bonds are sold between interest dates, the buyer will pay the seller any _________ interest.
ACCRUED ARDCCEU15. A bond sinking fund is reported in this section of the balance sheet.
INVESTMENTS SSETMTNEIVN16. The amortization of _________ on Bonds Payable will result in more bond interest expense than the cash amount of interest paid.
DISCOUNT ONUDSICT17. __________ on Bonds Payable will cause the carrying value of the bonds to be greater than the face value.
PREMIUM PEIUMMR18. In present value terms, a bond's interest payments form an ordinary __________.
ANNUITY YNTNIUA19. Most bonds are __________ by the issuing corporation at a price specified in the bond's indenture.
CALLABLE BALLCALE20. 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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