Functions and formulas in spreadsheets provide an instructional opportunity to help students build their skills in identifying errors in their own work and identifying a path to go about correcting the errors. This paper provides examples of functions and equations used to create two approaches to calculating the solution to one problem, such as a…

A factor that complicates the posting of the journal entries related to the issue of bonds is that the amount of money received by the issuing company may be different from the face value of the bond. If the bond stated rate is higher than the market interest rate at the time of issue of the bond, the company can sell the bond at a premium; on the…

Evidence of confusion in intermediate accounting textbooks regarding the annual percentage rate (APR) and annual effective rate (AER) is presented. The APR and AER are briefly discussed in the context of a note payable and correct formulas for computing each is provided. Representative examples of the types of confusion that we found is presented…

The rule of 78 is used by banks and loan companies to compute the amounts due when installment loans are paid early. Describes an unexpected case of negative amortization when the rule is applied. Presents an actual problem and discusses the case. (YP)