Bond issue costs, such as printing fees, legal fees, commissions, etc. are most appropriately accounted for by * debiting them to unamortized bond issued costs, setting them as a deferred charge on the statement of financial position and amortizing them in a manner similar to bond discount over the life of the bond. adding them to any discount on bonds or subtracting them from any premium on bonds when the bonds are sold. charging them to an expense account in the year the bonds are originally dated whether or not they are sold in that year. O charging them to expense account in the year the bonds are actually sold.
Bond issue costs, such as printing fees, legal fees, commissions, etc. are most appropriately accounted for by * debiting them to unamortized bond issued costs, setting them as a deferred charge on the statement of financial position and amortizing them in a manner similar to bond discount over the life of the bond. adding them to any discount on bonds or subtracting them from any premium on bonds when the bonds are sold. charging them to an expense account in the year the bonds are originally dated whether or not they are sold in that year. O charging them to expense account in the year the bonds are actually sold.
Chapter13: Long-term Liabilities
Section: Chapter Questions
Problem 10MC: The effective-interest method of bond amortization finds the difference between the ________ times...
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Transcribed Image Text:Bond issue costs, such as printing fees, legal fees, commissions, etc. are most appropriately
accounted for by *
debiting them to unamortized bond issued costs, setting them as a deferred charge on the statement of
financial position and amortizing them in a manner similar to bond discount over the life of the bond.
adding them to any discount on bonds or subtracting them from any premium on bonds when the bonds
are sold.
charging them to an expense account in the year the bonds are originally dated whether or not they are
sold in that year.
O charging them to expense account in the year the bonds are actually sold.
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