The amortization of the premium on bonds payable is the systematic movement of the amount of premium received when the corporation issued the bonds. ... Over the life of the bonds the premium amount will be systematically moved to the income statement as a reduction of Bond Interest Expense.
What is the amortization of premium on bonds payable?
www.accountingcoach.com > blog > amortization-premium-on-bonds-paya...
When using the effective interest method, the debit amount in the discount on bonds payable is moved to the interest account. Therefore, the amortization causes interest expense in each accounting period to be higher than the amount of interest paid during each year of the bond's life.
What Is the Effective Interest Method of Amortization? - Investopedia
www.investopedia.com > Corporate Finance & Accounting > Accounting
The account Discount on Bonds Payable (or Bond Discount or Unamortized Bond Discount) is a contra liability account since it will have a debit balance. Discount on Bonds Payable will always appear on the balance sheet with the account Bonds Payable.
Discount on Bonds Payable with Straight-Line ... - AccountingCoach
www.accountingcoach.com > bonds-payable > explanation > 6Bond
Although Discount on Bonds Payable has a debit balance, it is not an asset; it is a contra account, which is deducted from bonds payable on the balance sheet.
Chapter 10 - Financial Accounting
accounts.smccd.edu > nurre > online