ACCT 2331 Lecture Notes - Lecture 5: Effective Interest Rate, Amortization Schedule, Interest Expense
4 May 2016
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To: mary sykes; danazhang0429@gmail. com; yun fan; sam goble. In the bonds chapter, when we cover long term liabilities, among other areas, we also cover discount and premium amortization using the effective interest method. Our textbook (spiceland) covers this topic using the net method. However, they have not covered the gross method. Our students who go on to be accounting majors need to be able to do the gross method as well, as it is used in industry and upper-level classes. You can post supplemental material for the gross method on bb and inform students about the inclusion of the gross method. The quiz can focus on the gross method and the exam should also include questions on gross method since students will need to know this as they move to frameworks. Thank you very much and have a wonderful weekend, The face value is the amount of principal due at the maturity of the bonds.
