The interest expense recorded on an interest payment date is increased
A)by the amortization of premium on bonds payable.
B)by the amortization of discount on bonds payable.
C)only if the bonds were sold at face value.
D)only if the market interest rate is less than the stated interest rate on that date.

Question

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The interest expense recorded on an interest payment date is increased by the amortization of discount on bonds payable. When bonds are sold at a discount, the interest expense recorded increases over the life of the bonds as the discount is gradually amortized.

The Interest Expense Recorded on an Interest Payment Date Is