Over the term of the bonds the balance in the Discount on Bonds Payable account will

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The Discount on Bonds Payable account represents the difference between the face value of the bonds and the amount received from their sale. This discount will decrease over time as it is amortized (spread out) over the life of the bonds. Therefore, the balance in the Discount on Bonds Payable account will decrease over the term of the bonds. The Discount on Bonds Payable account represents the amount of discount on the bonds that were issued, i.e., the difference between the face value of the bonds and the amount received when the bonds were sold. As the bond approaches maturity, the discount decreases and eventually becomes zero. Therefore, over the term of the bonds, the balance in the Discount on Bonds Payable account will decrease.

Over the Term of the Bonds the Balance in the Discount