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Premium on Bonds Payable
A situation where bonds are sold above their face value, leading to a credit balance in the premium on bonds payable account.
Journal Entry
A record in accounting that documents a business transaction, indicating the accounts and amounts debited and credited.
Contract Rate
The agreed-upon interest rate in a lending agreement, bond, or other financial contracts.
Market Rate
The prevailing interest rate available in the market for securities of a similar risk and maturity, or the standard rate charged or paid for a specific service or commodity.
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