An organization that sells bonds to investors must deal with a variety of transactions. In the Accounting for Bonds course, we cover the accounting for every possible event, including the initial bond issuance, interest payments, the amortization of discounts or premiums, and the eventual redemption of bonds. We also address several related topics, including the effective interest method, how to account for convertible bonds, and dealing with bonds issued between interest payment dates.
Learning Objectives
Upon successful completion of this course, participants will be able to:
Identify the contents of a bond certificate and bond agreement.
Specify how bond accounts are classified in the issuer's accounting records.
Recall how a bond discount or premium is amortized.
Specify how the effective interest method works.
Major Topics
Accounting for Bonds
The Effective Interest Method
Bond Interest Expense
The Bond Covenant
