Discount on bonds payable is a(n)________.

Name: Discount on bonds payable is a(n)________.
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Discount on bonds payable represents the amount by which the face value of the bond exceeds the issue price. This is a contra-liability account that is deducted from the face value of the bonds payable on the balance sheet. It represents the additional amount of interest that the company will have to pay over the life of the bond due to the lower issue price.

Discount on Bonds Payable Is A(n)________