Recording Bonds under GAAP

The video tutorial explains how to record a bond issuance under GAAP principles. It covers the impact on the balance sheet, including asset inflow and liability recording, and how to handle bonds issued at face value, discount, or premium. The tutorial also discusses the income statement, focusing on financing activities and revenue. Lastly, it addresses issuance costs, detailing their treatment as deferred charges and their effect on net revenue.

What is recorded in the asset account when a bond is issued?

How should the value of the bond be recorded if it was issued at face value?

What happens to the proceeds from the bond issuance in the income statement?

How are issuance costs recorded in the balance sheet?

What should be done with costs associated with a bond issuance in the income statement?