Lesson: Bond Issuance Between Interest Dates

In this lesson, Nick Palazzolo, CPA, demystifies the complexities of bond issuance when it doesn't align with the interest payment dates. He uses straightforward comparisons to everyday financial situations, like credit card interest, to explain the concept of accrued interest in the context of bond issuance. Nick breaks down how buyers compensate sellers for interest that has accrued prior to the purchase and uses examples featuring Stark Inc. to illustrate different scenarios involving bond issuance at par, at a premium, and the corresponding journal entries. His engaging explanation ensures that even the trickier concepts related to timing and interest during bond issuance become clear and relatable.