If bonds are issued for a price below their face value, the bond discount should be

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Bond discount is the difference between the face value of a bond and its issue price, when the issue price is lower than the face value. This discount should be amortized over the life of the bond issue, which means it should be gradually reduced and charged to expense in each period. This is done because the discount represents a cost of borrowing for the issuer and should be reflected in the interest expense recorded in each period. Showing the discount as an addition to Bonds Payable or a current liability on the balance sheet would not correctly reflect its impact on the issuer's financial statements.

If Bonds Are Issued for a Price Below Their Face