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es Required information Learning Objective 10-P2: Account for discount bonds. Bonds are issued at a discount when the contract rate is less than the market
es Required information Learning Objective 10-P2: Account for discount bonds. Bonds are issued at a discount when the contract rate is less than the market rate, making the issue (selling) price less than par. When this occurs, the issuer records a credit to Bonds Payable (at par) and debits both Discount on Bonds Payable and Cash. The amount of bond interest expense assigned to each period is computed using the straight-line method. Issue Price, Contract Rate & Market Rate Bond sets Contract rate Market sets Market rate USD UROPE 77 14800 5598 EUR 121.4700 00360 0.0082
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