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Why might an investor choose a bond with a lower stated interest rate over one with a higher rate?
What is the primary difference between bonds payable and notes payable?
LMN Corporation issues \$300,000 of 4% bonds payable with interest payable semi-annually. What is the semi-annual interest payment, and what is the journal entry?
On December 31, 2023, XYZ Company accrues interest payable of \$3,000 for its bonds. What is the journal entry on December 31, and what is the entry on January 1, 2024, when the interest is paid?
If a bond is issued at 90% of its face value, what percentage of the face value is received in cash?
XYZ Corporation issues \$200,000 of bonds at a 102% premium. How much cash does XYZ Corporation receive?
What is the carrying value of a zero coupon bond at maturity if the face value is \$50,000 and the discount has been fully amortized?
How would you balance the journal entry for issuing zero coupon bonds with a face value of \$80,000 at a 12% discount?
How is the discount on bonds payable recorded in the financial statements when a zero coupon bond is issued?
What happens when the stated interest rate is less than the market interest rate?
Calculate the interest expense for a bond with a carrying value of \$120,000 and a market interest rate of 7% for an annual period.
A company issued bonds with a face value of \$200,000 at a discount of \$10,000. After 3 years, \$3,000 of the discount has been amortized. What is the carrying value of the bonds?
A company issued bonds at a discount and later repurchased them at a premium. What is the likely financial outcome?