Different bond issues should be maintained in separate accounts. When a Bonds Payable account is present on the balance sheet, it can be broken down into different issues or consolidated into a single balance. In the latter case, a schedule or note should disclose the details of the bond issues. It is also customary to provide a description of bonds issued in financial statements. The effective interest rate, maturity date, terms, and sinking fund requirements are commonly indicated in accompanying notes to financial statements.
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BONDS PAYABLE & THE BALANCE SHEET
- Front Matter
- Body Matter
- Back Matter