[New Podcast Episode] Unlocking the Basics: A Dive into Accounting for Long-Term Bonds Payable

I am excited to share that I am experimenting with creating podcasts for my blog. I did a podcast to try it out and the topic is “The basics of accounting for long-term bonds payable” and it is aimed at students in introductory financial accounting.

This podcast is 11:46 minutes in length and you can access it at this link. (The direct link to give your students is https://www.podbean.com/eas/pb-fne83-1718c8b.) (You can access the script for the podcast by downloading it here.)

There are also discussion questions to accompany this blog post. See below.

Note from Wendy to instructors: I am interested in your feedback – do you like this concept? Should I continue to create podcasts for introductory financial accounting and introductory managerial accounting? What topics are you interested in? I am really excited about the podcasts and am looking forward to hearing what you think. I did use AI in some of the podcast creation, which is really cool – and makes it possible to create these podcasts. Please reply to this blog post and let me know what you think. Thanks!

Discussion Questions

1. For a large company, what are the advantages of issuing bonds compared to taking out a traditional bank loan?
2. What is the difference between secured and unsecured bonds, and how does this impact the level of risk for investors?
3. How do market interest rates affect bond pricing? Why would a bond sell at a premium or a discount in relation to its face value?
4. What are the key differences between bonds issued at a discount versus a premium? How does a premium affect the cash received from the bond issuance? How does a discount affect the cash received from the bond issuance?