How do you record the issuance of bonds?

Record Issuance of Bonds?

• I need help with this question as I cannot compute the correct answer. Intel Inc. is the pioneer in the manufacture of microprocessor for computers. The company’s fiscal year runs ...show more

• Answer:

  Bonds are a type of debt instrument used by corporations and governments to raise capital. Bonds are sold to investors, who are essentially lending money to the issuer in exchange for interest payments (called "coupon payments") every 6 months. Bond owners are then repaid the face value of the bond upon maturity. There are several accounting treatments associated with the issuance of bonds, and learning how to account for bonds requires an understanding of each transaction involved.