Accounting 201 Ch 10-12
1.Bonds issued at par: sold for the face value amount. this generally
means that the bond's market and contract rates are equal to each
other
2.bonds issued at discount: issued for less than its par value, or a bond
currently trading less than its par value
3.bonds issued at premium: sold at a price in excess of its par value
4.straight-line amortization: a method of computing depreciation by
dividing the difference between the assets's cost and its expected
salvage value by the number of years it is expected to be used
5.installment notes: an obligation requiring a series of payments to the
lender
6.stockholders equity: the portion of the balance sheet that represents
the capital received from investors in exchange for stock, donated
capital and retained earnings
7.contributed capital: an entry on the shareholders's equity section of a
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4
1.Bonds issued at par: sold for the face value amount. this generally
means that the bond's market and contract rates are equal to each
other
2.bonds issued at discount: issued for less than its par value, or a bond
currently trading less than its par value
3.bonds issued at premium: sold at a price in excess of its par value
4.straight-line amortization: a method of computing depreciation by
dividing the difference between the assets's cost and its expected
salvage value by the number of years it is expected to be used
5.installment notes: an obligation requiring a series of payments to the
lender
6.stockholders equity: the portion of the balance sheet that represents
the capital received from investors in exchange for stock, donated
capital and retained earnings
7.contributed capital: an entry on the shareholders's equity section of a
1/
4
