Issue bond at a discount,

calculate, and record interest

payment

Bob Steele CPA, CGMA, M.S.tax 1

Objectives: We will be able to:
• Record the journal entry for the issuance of a bond at a discount
• Explain the effect of recording the journal entry on trial balance
accounts
• Calculate the interest payment and amortization of discount using the
straight line method
• Record the journal entry related to interest payments and
amortization of discount
• Explain the effect of recording the journal entry on trial balance
accounts

Bob Steele CPA, CGMA, M.S.tax 2

Bob Steele CPA, CGMA, M.S.tax 3
Bob Steele CPA, CGMA, M.S.tax 4
Bob Steele CPA, CGMA, M.S.tax 5
Bob Steele CPA, CGMA, M.S.tax 6
Bob Steele CPA, CGMA, M.S.tax 7
Bob Steele CPA, CGMA, M.S.tax 8
Objectives: We are now able to:
• Record the journal entry for the issuance of a bond at a discount
• Explain the effect of recording the journal entry on trial balance
accounts
• Calculate the interest payment and amortization of discount using the
straight line method
• Record the journal entry related to interest payments and
amortization of discount
• Explain the effect of recording the journal entry on trial balance
accounts

Bob Steele CPA, CGMA, M.S.tax 9