Accounting for Bonds

For your main Discussion post, share your understanding of bonds as a form of financing a corporation. Discuss how the price of a bond is determined and provide an example of each of the following:

A bond issued at a premium,

A bond issued at par,

A bond issued at a discount.

Additionally, provide the journal entry that would be made to record each of your bond examples as well as the first journal entry that would be made to amortize each of the bonds premium and discount. What would be the Net Bond Value after the first amortization entry for each of your example bonds? In your main post, also comment on the circumstances upon which a bond may be callable and when a bond may be convertible.

For your responses, focus on the following questions: Do you agree with the bond examples given including the journal entries to record issuance and amortization of the premium or discount? Why or why not? What new insight have you gained about accounting for bonds? How has the discussion impacted your understanding of using bonds as a form of corporate financing? Support your responses to classmates with additional research and/or examples of your position related to accounting for bonds.

Be sure to post at least 2 references in support of your explanations and conclusions.