1. How do you compute bond interest expense when a bond is sold at a premium? Explain your answer.
2. What accounts are affected when recording the issue date of a discount bond? What accounts are affected when recording interest and amortization? Which accounts are credited and which accounts are debited when creating journal entries?
3. What accounts are affected when recording the issue date of a premium bond? What accounts are affected when recording interest and amortization? Which accounts are credited and which accounts are debited when creating journal entries?
4. What accounts are affected when a bond matures? Which accounts are credited and which accounts are debited when creating journal entries?