Question

how stocks and bonds are carried on the books of the issuer and then of the...

how stocks and bonds are carried on the books of the issuer and then of the buyer.

Homework Answers

Answer #1

In the books of the issuer:

Stocks are carried at their issue price which is bifurcated into face value and excess of face value. Face value are accounted for as common stock while addition to face value is Paid-in Capital.

While, bonds are accounted for at the carrying value as Bonds Payable, which even includes, Bonds Payable, Unamortized Discount or Premium.

In the books of the buyer:

Both Stocks and Bonds are accounted for as investments in their books. Stocks may even be classified as marketable securities too.

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