The premium on bonds payable
A)serves to reduce interest expense on the income statement.
B)serves to increase interest expense on the income statement.
C)is an adjunct account to notes payable.
D)increases the cash interest payment.
E)is a contra account to bonds payable

Question

Quizplus · Accepted Answer

The premium on bonds payable is amortized over the life of the bond, reducing the interest expense recognized on the income statement.

The Premium on Bonds Payable