In contrast, when the bonds were issued at a discount, the amount of cash received was $96,000 ($4,000 less than the face value), but the entire face value ($100,000) must be repaid at maturity. The additional $4,000 effectively represents additional interest. However, the accounting system must allocate this interest among the various accounting periods in which the debt is outstanding. This allocation has two parts: (1) the actual interest payment made to the lender during the period and (2) amortizing any premium or discount on the bond. Although the interest payment made to the lender during the period is always a component of the period’s interest expense, there are two methods for amortizing any premium or discount. In the effective interest rate method, interest expense for the period is always the yield (i.e., effective interest rate) times the carrying (or book) value of the bonds at the beginning of the period.
The second method is the straight line method. In this method equal amounts of premium or discount are amortized to interest expense each period. Although GAAP requires use of the effective interest rate method, the straight-line method may be used if the results are not materially different from the effective interest rate method. Repayment of the principal at maturity is trivial. Recall that the principal amount repaid is equal to the face value. This is also the amount that was originally credited to the note or bond payable. As such, you merely need to debit the note or bond payable and credit the cash. While it is possible for companies to sell an almost unlimited number of different kinds of debt instruments by varying parameters of the contract, we need to discuss three of the most frequently used forms:
• Debt with regular interest payments sold at their face or par value.
• Debt with no interest payments and a single payment of principal at maturity. Because no interest payments are made (i.e., a stated rate of zero percent), this debt is sold for a relatively large discount.
• Debt with regular interest payments sold for more (a premium) or less (a discount) than the face or par value.
Tweet
When looking for new housing options, there are a number of factors that must b considered. In such a case, there is a need for you to make decisions regarding where you will reside for the limited time. If considering taking your family out on holiday, finding comfortable and affordable home rentals to spend the holiday could mean a lot to them.
No matter how short lived the stay is expected to be, it is good to remember that you will be spending your money and you should therefore get the appropriate value for your money. For some people, renting is a rite of passage and it indicates the stage before buying your own house.
With competition all over the market and everybody looking for a rental, prices are bound to go up. You will need to put in some extra effort and even work on your bargaining skills in order to get an affordable property in your desired location.
The internet should be your fist stopover. This is because it has become the global library for any type of content that you may be interested in. There are numerous sites where you can find listings of rentals that are updated from time to time as properties come up.
Since you may be limited by a number of factors including your budget, you should know how to get an affordable rental without too much sweat. The best priced homes are those that were initially intended for selling but failed to get a buyer. The owners might opt to rent instead and this could mean relatively low prices compared to other properties. I
Once you settle on a location and a particular rental, compare the local pricing for such rentals. Remember the market is competitive and you should not pay a price that is unreasonably high for a rental. Flexibility is important in such cases since you may not always get the price you want. Remember there is always room for negotiation.
You may be considering moving with family, in such a case, you will definitely search for a bigger and more spacious house. The budget should be flexible enough since residences in different sizes and locations will definitely be priced differently. Safety should also be among the priorities since no level of comfort or low priced house can supplement living in an insecure location.
The available utilities will determine how effective the home will be. Also find out who will be responsible for the utilities before settling down. In case you have a pet, establish whether the ownermanager accepts pets in the building or not. The amenities will also attract more people compared to an empty room.
The lease should now get your attention. The property may be good enough for you but the terms and conditions may be unacceptable. A trustworthy landlord should also influence your decision on whether you will rent or not.
When you are looking for information about home rentals, go to our web pages
here today. You can see details at http:southernlivingren. Cheap Jerseys
Wholesale Wholesale Cheap
Jerseys Wholesale Jerseys China Free
Shipping Wholesale NHL Jerseys Free
Shipping Wholesale NFL Jerseys Free
Shipping Wholesale College Jerseys Free
Shipping Wholesale Basketball Jerseys
Free Shipping Cheap Wholesale
Jerseys Wholesale New NBA
Jerseys Cheap College Jerseys
Online
