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…

By convention U.S. bond markets announce the actual price of a bond as the sum the quoted price plus accrued interest. The economic meaning of accrued interest and its role in this price announcing convention is generally misunderstood by accounting textbook authors who mistakenly provide accrued interest with both an economic and administrative…

THIS DOCUMENT CONTAINS THE PAPERS PRESENTED AT THE ANNUAL NATIONAL CONFERENCE ON SCHOOL FINANCE SPONSORED BY THE COMMITTEE ON EDUCATIONAL FINANCE OF THE NATIONAL EDUCATION ASSOCIATION. THE CONFERENCE DEALT PRIMARILY WITH NEEDED CHANGES IN SCHOOL FINANCE TO SUPPORT THE IMPROVEMENT AND INNOVATIONS DEMANDED FOR AMERICAN EDUCATION. ALSO INCLUDED ARE…

This annual report reviews fiscal year 1999 for institutions serviced by the Minnesota Higher Education Facilities Authority. The report notes a slight decline in new financing activity, although the $87.7 million financed during the 1999 fiscal year was the second highest annual total for the Authority. Following some introductory material, the…