[grlnextdoor]

Hi all-

I’m confused on Becker’s question on bond payable vs net bond payable and was wondering if exams are like this. For example- Becker asked “What amount should be reported as Bond Payable?” The face value is $1,000,000 so I selected that as my answer. However, the answer Becker gave was $900,000 the Net Bond Payable amount.

I re-read the question over and over and still think it’s asking what is the bond payable.

Thoughts?

Thanks!

[Anonymous]

i dont use becker but i think net bonds payable is the amount after amortizing the discount or premium

[Anonymous]

i dont use becker but i think net bonds payable is the amount after amortizing the discount or premium

[carpeCPA]

Bonds are reported in the financial statements at their net value. While the actual amount reported in the Bonds Payable liability account is the face value; you must add/subtract the premium/discount when presenting the financial statements.

Hope this helps!

REG - 93 (Jul'13)
FAR - 97 (Dec '13)
AUD - 99 (May '14)
BEC - Jul '14

Becker Self Study/Ninja Notes/Ninja Audio/Ninja MCQ/Wiley Test Bank/Wiley Book

[carpeCPA]

Bonds are reported in the financial statements at their net value. While the actual amount reported in the Bonds Payable liability account is the face value; you must add/subtract the premium/discount when presenting the financial statements.

Hope this helps!

REG - 93 (Jul'13)
FAR - 97 (Dec '13)
AUD - 99 (May '14)
BEC - Jul '14

Becker Self Study/Ninja Notes/Ninja Audio/Ninja MCQ/Wiley Test Bank/Wiley Book

[Author]

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