The expenses associated with the issuance of bonds should be added to the bond discount or subtracted from the bond premium on the date the bonds are issued.

Question

Quizplus · Accepted Answer

The expenses associated with the issuance of bonds are recorded as a separate expense in the period in which they are incurred, not added to the bond discount or subtracted from the bond premium.

The Expenses Associated with the Issuance of Bonds Should Be