A bond is purchased at a discount and will be accounted for under the amortized cost model. The entry to record the amortization of the discount includes a

Question

Quizplus · Accepted Answer

When a bond is purchased at a discount, the amortization of the discount increases the carrying amount of the bond. This is recorded by debiting the investment account, which reflects the increase in the bond's value as the discount is amortized over time.

A Bond Is Purchased at a Discount and Will Be