(1) Bonds payable differ from capital stock in several ways.

(2) Account for retirement of bonds payable.

(3) Companies many retire their bonds payable before maturity.

(4) Account for conversion of bonds payable.

(5) Bonds payable are the typical example of long - term liabilities.

(6) Accounting for bonds payable closely parallels accounting for notes payable.

(7) Bonds payable are reported on the balanced sheet at their maturity amount plus any unamortized premium or minus any unamortized discount.

(8) Bonds payable shall be accounted for based on the face value if the bonds issued.

(9) The most common examples are bonds payable and mortgages payable, and long-term notes payable.

(10) First, bonds payable are a liability; bondholders are creditors of the corporation, not owners.

(11) The debit balance account, Discount on Bonds Payable, is a contra-liability account.

(12) Account for basic bonds payable transactions by the straight - line amortization method.

(13) A corporation may borrow money by issuing long - term notes and bonds payable.

(14) Liabilities are amounts owned to outsiders, such as payable, accounts payable, bonds payable.

(15) Recognized one year's amortization of premium on 40 - year bonds payable.

(16) Liabilities are amounts owned to outsiders, such as notes payable , accounts payable, bonds payable.

(17) Recognized one year's amortization of discount on 40 - year bonds payable.