Accounting › Section L · Long-term liabilities › Topic L.3
Journal entries over a bond's life
A bond produces only a few kinds of transaction: the sale, the interest payments and the repayment. Once the amortisation table is built, every journal entry over the bond's life can be read straight from it.
In this topic
- Three events, viewed by the issuer
- Issuing bonds at par
- Issuing bonds at a discount
- Issuing bonds at a premium
- Worked example: recording interest payments
- Accruing interest at year end
- Repaying bonds at maturity
- Retiring bonds early
- Worked example: calling bonds at a loss
- Presentation, and IFRS
- Common mistakes to avoid
- Key takeaways
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