Chapter 8
Non-Current Liabilities
384
AS-4 (
3
4
)
Bonds can be issued at different prices relative to their face value. Name and describe the
three types of bonds relative to face value.
AS-5 (
4
)
When would a bond be issued at a discount? At a premium?
AS-6 (
4
)
A $100,000 bond is issued for $110,000. Is the current market interest rate for bonds above or
below the rate stated in the bond contract?
AS-7 (
4
5
)
What amount remains in the discount on bonds account or premium on bonds account on
the maturity date of the bond?
