When converting to government-wide financial statements,the entry to record the amortization of the premium on a bond would:

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When converting to government-wide financial statements, the amortization of the premium on a bond is recorded as a reduction of interest expense. Therefore, the entry would be a debit to Premium on Bonds Payable and a credit to Interest Expense. Option A is incorrect because it records the expense in the wrong account. Option C is incorrect because it records a debit to the Bond Payable account, which would decrease the carrying value of the bond. Option D is incorrect because the premium on bonds payable must be amortized.

When Converting to Government-Wide Financial Statements,the Entry to Record the Amortization