The systematic allocation of the discount on bonds payable (reported as a debit in a contra-liability account) to Bond Interest Expense over the life of the bonds. The journal entry to amortize contains a debit to the income statement account Bond Interest Expense and a credit to the balance sheet account Discount on Bonds Payable. To learn more, see Explanation of Bonds Payable.
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For the past 52 years, Harold Averkamp (CPA, MBA) has
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