Asked by
Michelle Samora
on Nov 13, 2024Verified
The adjusting entry to record the amortization of a discount on bonds payable is
A) debit Discount on Bonds Payable, credit Interest Expense
B) debit Interest Expense, credit Discount on Bonds Payable
C) debit Interest Expense, credit Cash
D) debit Bonds Payable, credit Interest Expense
Amortization
Amortization is the process of spreading out a loan into a series of fixed payments over time, or gradually writting off the initial cost of an intangible asset.
Discount on Bonds Payable
The difference when bonds are issued for less than their face value, representing an extra cost of borrowing to the issuer.
- Learn how to execute journal entries for financial events such as bond issuances, the disbursement of interest, and the amortization process for bond discounts or premiums.
Verified Answer
JJ
Learning Objectives
- Learn how to execute journal entries for financial events such as bond issuances, the disbursement of interest, and the amortization process for bond discounts or premiums.
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