On August 1, John issued a $600,000, semi-annual, 5 year, 3.5% bond. The market rate...
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Accounting
On August 1, John issued a $600,000, semi-annual, 5 year, 3.5% bond. The market rate for similar bonds on that day was 4.0%. John uses the effective interest method to record the amortization of discounts. He has decided to report net bonds on the balance sheet, instead of reporting the bond and its discount separately.
What does net bonds look like on the balance sheet and how do I get it from bonds payable and discounts?
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