Question

What does it mean to amortize the premium, discount, and issue costs on bonds payable?

Answer 1

With regards to bonds payable, the term amortize means to systematically allocate the discount onbonds payable, the premium on bonds payable, and the bond issue costs to Interest Expense over the remaining life of the bonds.

Answer 2

the amortize by premium indicates the profit issue,the siscoynt indicates the requiremebt for increasing production and the issue costs indicates the matter of money purposes on bonds payable by the govt.