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Bonds Payable (Topic Outline)


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Read our Explanation (11 Parts) Free

Our Explanation of Bonds Payable covers the recording of bonds, the accrual of interest expense, and the amortization of the discount and premium on bonds payable. You gain an understanding on why the market value of existing bonds will change in the opposite direction from the change in interest rates.

Part 1Introduction to Bonds Payable, Bond Interest and Principal Payments
Part 2Accrued Interest, Bonds Issued at Par with No Accrued Interest
Part 3Bonds Issued at Par with Accrued Interest
Part 4Market Interest Rates and Bond Prices
Part 5Bond Premium with Straight-Line Amortization
Part 6Bond Discount with Straight-Line Amortization
Part 7Calculating the Present Value of a 9% Bond in an 8% Market
Part 8Amortizing Bond Premium with the Effective Interest Rate Method
Part 9Calculating the Present Value of a 9% Bond in a 10% Market
Part 10Amortizing Bond Discount with the Effective Interest Rate Method
Part 11Additional Bond Terminology
Take our Practice Quiz Free

This 20-question quiz is a fast way to assess your understanding of the Bonds Payable Explanation. It's also a great warmup for our Quick Test.

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We've answered 46 popular questions related to the topic Bonds Payable. Review them all or use the search box found at the top of each page of our website for your specific questions.

Review our Flashcards

Our flashcards for the topic Bonds Payable will help you master key terms and definitions. You can view them on any device or print them out.

Solve our Word Scramble Free

If you find Bonds Payable terminology difficult, this Word Scramble will provide clues (scrambled answers) to assist you.

Solve our Crossword Puzzle #1 Free

We created this crossword puzzle for you to learn, review, and retain terminology for the topic Bonds Payable in a more fun format.

Solve our Crossword Puzzle #2 Free

We created this crossword puzzle for you to learn, review, and retain terminology for the topic Bonds Payable in a more fun format.

Review our Sample Business Forms

Our bonds payable forms include four forms to assist with the amortization of bond discount and bond premium. (Two use the straight-line method of amortization and two use the effective interest method.) All of our business forms contain an Excel template, a blank PDF form, and a filled-in PDF form.

Review our Cheat Sheet

Our Bonds Payable Cheat Sheet includes the multiple terms associated with bonds payable as well as the recording of bonds issued at par, at a discount, and at a premium.

Take our Quick Test

This graded 40-question test measures your understanding of the topic Bonds Payable. Discover which concepts you need to study further and enhance your long-term retention. All of our quick tests can be taken online and/or printed.

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About the Author

Harold Averkamp

For the past 52 years, Harold Averkamp (CPA, MBA) has
worked as an accounting supervisor, manager, consultant, university instructor, and innovator in teaching accounting online. He is the sole author of all the materials on

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