Discount B/P
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Represents the increase in interest recognized over the term of a bond
because the yield rate is greater than the coupon rate; also, the decrease in
present value of a B/P relative to par@ issue due to the rate relationship
Reorganization of Debt: Things to remember when making journal entries
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, 1. Debtor: does not use PV to calculate the old vs. new debt
2. Creditor: uses PV to calculate the old vs. new debt. Uses old interest rate
(historical rate) to calculate the new debt (aka loss)
3. Debtor: the B/P is actually reduced each time interest is paid
4. Creditor: the B/P is never reduced. Bad debt expense and allowance for
DA is used
Stock split
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A change in the number of outstanding shares by reissuing shares with new
par values
Par Value
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Legal capital; amount recorded in a given security account @ sale (such as
C/S)
Dividend-on
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Stock sold before the date of record are sold dividends on (buyer receives
the dividend & must pay the seller the dividend plus the sales price)
Give this one a try later!
Represents the increase in interest recognized over the term of a bond
because the yield rate is greater than the coupon rate; also, the decrease in
present value of a B/P relative to par@ issue due to the rate relationship
Reorganization of Debt: Things to remember when making journal entries
Give this one a try later!
, 1. Debtor: does not use PV to calculate the old vs. new debt
2. Creditor: uses PV to calculate the old vs. new debt. Uses old interest rate
(historical rate) to calculate the new debt (aka loss)
3. Debtor: the B/P is actually reduced each time interest is paid
4. Creditor: the B/P is never reduced. Bad debt expense and allowance for
DA is used
Stock split
Give this one a try later!
A change in the number of outstanding shares by reissuing shares with new
par values
Par Value
Give this one a try later!
Legal capital; amount recorded in a given security account @ sale (such as
C/S)
Dividend-on
Give this one a try later!
Stock sold before the date of record are sold dividends on (buyer receives
the dividend & must pay the seller the dividend plus the sales price)
