Lesson: Debt, notes and bonds payable - Practice Questions

In this lesson, Nick Palazzolo, CPA, dives deep into the intricacies of accounting for debt, notes, and bonds payable through a series of practice questions designed to test and strengthen the grasp of these concepts. Nick walks through the calculation methods of note payable balances after payments, illustrating the principles behind principal reduction and interest payments with a relatable home mortgage example. Then, he shifts to figure out the cash amount received from issuing bonds at a discount, taking through the correct journal entries and the effects of discount amortization. With a focus on the mechanics of bond issues and note repayments, Nick ensures that the foundations of these financial instruments are clear and understandable, using practical problems to illustrate the theoretical concepts.