Account Information

Financial Statement Statement of Financial Position
Normal Balance Credit

Definition

Debt securities issued by the company to lenders

Common Journal Entries

Issue bonds

Dr. Bank Account
Cr. Bonds Payable

Pay bond interest

Dr. Interest Expense
Cr. Bank Account

Amortize bond discount

Dr. Interest Expense
Cr. Bond Discount

Redeem bonds at maturity

Dr. Bonds Payable
Cr. Bank Account

Issue bonds

Dr. Bank Account
Cr. Bonds Payable

Pay bond interest

Dr. Interest Expense
Cr. Bank Account

Amortize bond discount

Dr. Interest Expense
Cr. Bond Discount

Redeem bonds at maturity

Dr. Bonds Payable
Cr. Bank Account

📐 IFRS vs US GAAP Accounting Treatment

IFRS IFRS 9 Financial Instruments
US GAAP ASC 470 Debt

❓ Frequently Asked Questions

Q: What are bonds payable?

A: Debt securities issued by the company to the public, due for repayment at a future date, with periodic interest payments.