1. In your own words, detail out the primary differences between “bonds payable” and “notes payable”?
2. What conditions must be present for bonds to be issued at a discount?
3. What is meant by the terminology ‘carrying value of bonds’?
4. Newman Production Services signed an 12%, 10 year note for $170,000. The company pays $2,700 per month as a fixed installment payment. How much interest expense would be recorded at the time of the second monthly installment payment?