Saturday, February 9, 2013

Understanding Bond Retirement at Maturity

Bond Retirement at Maturity

The carrying value of bonds at maturity always equals par value. For example, both Exhibits 14.7 (a discount) and 14.11 (a premium) show that the carrying value of bonds at the end of their lives equals par value ($100,000). The retirement of these bonds at maturity, assuming interest is already paid and entered, is recorded as follows:

 

No comments:

Post a Comment