A prepaid expense. 54. If bonds are issued at a discount, the discounted value of the bonds is called the carrying amount. C) should be reported in the Paid-in Capital section of the balance sheet. Question. (Valix 2015) 55. Uploaded By speakerphone. On any given financial statement date, Bonds Payable is reported on the balance sheet as a liability, along with the unamortized Discount that is subtracted (known as a “contra” account). B) an expense on the income statement. The discount on bonds payable occurs when a corporation issues bonds with a stated rate less than a market rate. The first bank to initiate the permanent issue of banknotes was the Bank of England. In other words, a discount is the difference between the par value and the issue price when the issue price is lower than the par value. Discount (premium) on bonds payable should be reported in the balance sheet as a direct deduction from (addition to) the face amount of the bond. If the amount received is greater than the par value, the difference is known as the premium on bonds payable. As Couponxoo’s tracking, online shoppers can recently get a save of 50% on average by using our coupons for shopping at A discount on bonds payable … C) an asset on the balance sheet. The $1,000 discount is reported with the note on the balance sheet to … The coupon rate is 8%. In medieval Italy and Flanders, because of the insecurity and impracticality of transporting large sums of cash over long distances, money traders started using promissory notes. Bonds payable are a form of long term debt usually issued by corporations, hospitals, and governments. 1. To learn more, see Explanation of Bonds Payable. Banknote collecting, or notaphily, is a slowly growing area of numismatics. 4,950,000 c. 4,900,000 d. 5,400,000 12. Expert Answer . Banknotes may also be overprinted to reflect political changes that occur faster than new currency can be printed. The heavy weight of the new coins encouraged merchants to deposit it in exchange for receipts. A contra-liability. The illustration below shows the balance sheet disclosure as of June 30, 20X3. He is the sole author of all the materials on AccountingCoach.com. Deferred credit separate from the note. The flip side or an unamortized bond discount is an unamortized bond premium.A bond premium is a bond that is priced higher than its face value. The discount on bonds payable originates when bonds are issued for less than the bond's face or maturity amount. Investors who want a higher coupon rate will have to pay extra for the bond in order to entice the original owner to sell. This type of investment is known as a bond sinking fund. Definition of Premium or Discount on Bonds Payable The premium or discount on bonds payable is the difference between the amount received by the corporation issuing the bonds and the par value or face amount of the bonds. Bonds payable - Face value : $100,000: Less: Bond discount ($7,580) Bonds payable - net: $92,420: Recognition of interest on bonds issued at discount. Here we will take a basic example to understand bond accounting of par value bonds.Four-year bonds are issued at face value of $100,000 on January 1, 2008. CODES (1 months ago) A discount on bonds payable quizlet - Updated Daily 2020. How to Account for Discounted Bonds - dummies. Are bonds payable reported as a current liability if they mature in six months? See the answer. Unamortized debt discount shall be reported in the statement of financial position of the issuer as a. a. Bonds Payable are the long term debt issued by the company with the promise to pay the interest due and principal at the specified time as decided between the parties and is the liability, bond payable account is credited in the books of accounts of the company with the corresponding debit to cash account on the date of issue of the bonds. Bonds payable that mature (or come due) within one year of the balance sheet date will be reported as a current liability if the issuer of the bonds must use a current asset or will create a current liability in order to pay the bondholders when the bonds mature. d. Part of the issue costs ____ 5. This meant that the note could be used as currency based on the security of the goldsmith, not the account holder of the goldsmith-banker. Bond discount is the amount by which the market price of a bond is lower than its principal amount due at maturity. Amortization of discount on bonds payable — AccountingTools. The debit balance in this account will be amortized to bond interest expense over the life of the bonds and results in more interest expense than interest paid. Generally, if the bonds are not maturing within one year of the balance sheet date, the amounts will be reported in the long-term or noncurrent liabilities section of the balance sheet. called the matching principle. The income statement for each of the 10 years would show Bond Interest Expense of $12,000 ($ 6,000 x 2 payments per year); the balance sheet at the end of each of the years 1 to 8 would report bonds payable of $100,000 in long-term liabilities. • How should discount on bonds payable be reported on the financial statement? Every year prior to maturity of the bond, the company lists the bond's value as a long term liability and a debit against bonds payable. C) an assets on the balance sheet. For example, when a bond is issued at par, the cash received is recorded on the asset side whereas an equal amount is reported in the liabilities side as Bonds payable. D) revenue on the income statement. The emergence of currency third party grading services (similar to services that grade and “slab”, or encapsulate, coins) also may have increased collector and investor interest in notes. What is the carrying amount of bonds payable at year-end? 18-The unamortized balance of discount on bonds payable is reported in the balance sheet as: Multiple Choice. Bonds that are not considered investment grade, but are not in default, are called “high yield” or “junk” bonds. 18-The unamortized balance of discount on bonds payable is reported in the balance sheet as: Multiple Choice. On issuance, a premium bond will create a “premium on bonds payable” balance. Gain realized on the disposition of a market discount bond must be recognized as interest income to the extent of the accrued market discount, and any remaining gain will be capital if the bond is a capital asset in the hands of the holder. “Market discount” is the excess of the stated redemption price of the bond at maturity over the basis of the bond immediately after its acquisition by the taxpayer. 92,420 ($100,000 face value less discount of $7,580). Lower Default Risk. The discount on bonds payable originates when bonds are issued for less than the bond's face or maturity amount. By the early 12th century, the amount of banknotes issued in a single year amounted to an annual rate of 26 million strings of cash coins. These replaced the copper-plates being used instead as a means of payment. In the last of these series, the issuing bank would stamp its name and promise to pay, along with the signatures of its president and cashier on a preprinted note. Acct 3312 Ch 14 2/3/14 3 Bonds Issued on Interest Date Example: The Carlson Company issued $300,000 of 6% bonds on January 1, 2003. Direct deduction from the present value of the debt. Premium on bonds payable? Bonds payable should be reported as a long-term liability on the balance sheet of the issuing corporation at: A. (2 days ago) Discount on bonds payable is a contra account to bonds payable that decreases the value of the bonds and is subtracted from the bonds payable in the long‐term liability section of the balance sheet. Current bond market price. Summary of bonds payable. A senior note is a type of bond that takes precedence over other debts in the event that the company declares bankruptcy and is forced into liquidation. B) deducted from bonds payable: C) classified as a stockholders' equity account. COUPON (3 days ago) In the video example, the carrying value of the bonds are $61,750 calculated as Bonds Payable $65,000 – Discount on Bonds Payable remaining $3,250. The unamortized premium on bonds payable will have a credit balance that increases the carrying amount (or the book value) of the bonds payable. Are bonds payable reported as a current liability if they mature in six months? The discount resulting from the determination of the present value of a note payable shall be reported in the statement of financial position as a. 11. Q 111. Your email address will not be published. The unamortized discount on bonds payable will have a debit balance and that decreases the carrying amount (or book value) of the bonds payable. an asset on the balance sheet. Three years later, the bank went bankrupt, after rapidly increasing the artificial money supply through the large-scale printing of paper money. Established in 1694 to raise money for the funding of the war against France, the bank began issuing notes in 1695 with the promise to pay the bearer the value of the note on demand. b. Retained Earnings: Debit or Credit Balance? Cheap foreign imports of copper had forced the Crown to steadily increase the size of the copper coinage to maintain its value relative to silver. This disparity is diminishing as paper money prices continue to rise. A discount on bonds payable is reported in the financial statements as: A) a reduction from the bond liability on the balance sheet. ... Reported as a deduction from bonds payable and amortized over the ten-year bond term. Explore answers and all related questions . A few rare and historical banknotes have sold for more than a million dollars. d. Addition to the face amount of the note. For years, the mode of collecting banknotes was through a handful of mail order dealers who issued price lists and catalogs. A contra liability. B) should be reported on the balance sheet as a deduction from the face amount of the related bonds payable. However, if interest rates begin to decline and similar bonds are now issued with a 4% coupon, the original bond has become more valuable. A contra-liability. The unamortized balance of discount on bonds payable is reported in the balance sheet as: D. A contra-liability Eagle Company issued ten-year bonds at 96 during the current year. Credit ratings for a company and its bonds are generated by credit rating agencies like Standard and Poor’s, Moody’s, and Fitch Ratings. Discount on bonds payable is a contra account to bonds payable that decreases the value of the bonds and is subtracted from the bonds payable in the long-term liability section of the balance sheet. The issuer of bonds makes a formal promise/agreement to pay interest usually every six months (semiannually) and to pay the principal or maturity amount at a specified date some years in the future. The notes, which are sold in $100 increments, pay interest in six-month intervals and pay investors the full face value of the note, upon maturity. The balance in Unamortized Discount on Bonds Payable: A) would be added to the face amount of the related bonds payable on the balance sheet. Lower Default Risk. In each separate situation, show how bonds payable is reported in the long-term liabilities section of the December 31 balance sheet. This problem has been solved! However, the amount of the discount is listed and subtracted from the bonds payable. notes payable. Expert Answer 100% (1 rating) The answer is Option 4. c. Deferred charge. In the balance sheet, the account, Premium on Bonds Payable, is A) added to bonds payable. These became banknotes when the manager of the Bank decoupled the rate of note issue from the bank currency reserves. D. Is Reported Under The Equity Section On The Balance Sheet. Both are liability valuation accounts. This amount, called its par value, is often $1,000. (Amounts to be deducted should be entered with a minus sign.) Expert Answer . The increased price will bring the bond’s total yield down to 4% for new investors because they will have to pay an amount above par value to purchase the bond. Is A Contra-asset Account. CODES (6 days ago) Definition: A discount on bonds payable occurs when the bond’s par value is higher than the issue price or carrying value.The difference between these two numbers is considered the bond discount. accounts payable. What is the residual amount allocated to the equity component? b. This is the sum total of Present value of Principal + Present value of Interest = 73,503 + 26,497 = 100,000 2. The answer is as follows: Option B is correct. In other words, a discount is the difference between the par value and the issue price when the issue price is lower than the par value. Required fields are marked *. Discount On Bonds Payable Quizlet - 01/2021. In this case, the Carrying value of the bond is equal to … What is the carrying amount of bonds payable at year. In our earlier example, the company would debit cash for $9,000, credit notes payable for $10,000, and debit discount on notes payable for $1,000. Company D has printed 1,000 bonds of $100 par value having a maturity of 5 years and annual coupon of $8 per year. discount on bonds payable definition A contra liability account that reports the amount of unamortized discount associated with bonds that are outstanding. Click to see full answer. The interest payment (the coupon) is part of the return that bondholders earn for loaning their funds to the issuer. The first short-lived attempt at issuing banknotes by a central bank was in 1661 by Stockholms Banco, a predecessor of Sweden’s central bank Sveriges Riksbank. The shift toward the use of these receipts as a means of payment took place in the mid-17th century, as the price revolution, when relatively rapid gold inflation was causing a re-assessment of how money worked. Amortizing Bonds Payable. Premium on bonds payable? Harold Averkamp (CPA, MBA) has worked as a university accounting instructor, accountant, and consultant for more than 25 years. A current liability. Bonds are generally reported on the _____ as a long-term liability at their present value. In the video example, the carrying value of the bonds are $61,750 calculated as Bonds Payable $65,000 – Discount on Bonds Payable remaining $3,250. C) Discount on Bonds Payable D) Premium on Bonds Payable. Chapter 11: Multiple Choice, Question 53 All of the following are reported as current liabilities except bonds payable. Billing Software: the Key Questions You Need to Ask. c. Deferred charged separate from the note. The journal entry to record this transaction is to debit cash for $87,590 and debit discount on bonds payable for $12,410. There was a gradual move toward the issuance of fixed denomination notes, and by 1745, standardized printed notes ranging from £20 to £1,000 were being printed. Bonds payable that mature (or come due) within one year of the balance sheet date will be reported as a current liability if the issuer of the bonds must use a current asset or will create a current liability in order to pay the bondholders when the bonds mature. Continuing with the example, if the bond was issued at a discount of $150, the semiannual amortization using the straight-line method is $15: ($150 / 5) / 2 = $30 / 2 = $15. CODES (3 months ago) 7 new a discount on bonds payable quizlet results have been found in the las. 24. Pages 8. In the year-end financial statements, the discount should be A. Deducted from bonds payable statements, the discount should be A. Deducted from bonds payable School University of San Agustin; Course Title AE 16; Type. Generally, a central bank or treasury is solely responsible within a state or currency union for the issue of banknotes. An expense account. The effective interest method of amortization must be used to calculate interest expense. The illustrated catalogs and “event nature” of the auction practice seemed to fuel a sharp rise in overall awareness of paper money in the numismatic community. This banknote issue was brought about by the peculiar circumstances of the Swedish coin supply. C. Face value less any unamortized premium or plus any … Unamoritzed Bond Premium . Treasury notes, commonly referred to as T-notes, are financial securities that generally have longer terms than Treasury bills, but shorter terms than Treasury bonds. Thus, many different banks or institutions may have issued banknotes in a given country. A discount on bonds payable is reported in the financial statements as A) a reduction from the bond liability on the balance sheet. What Does Discount on Notes Payable Mean? While the sinking fund helps companies ensure they have enough funds set aside to pay off their debt, in some cases, they may also use the funds to repurchase preferred shares or outstanding bonds. As the balance in the discount on bonds payable account declines over time, this means that the net amount of the bonds payable account and discount on bonds payable account presented in the balance sheet will gradually increase, until it is $10,000,000 as of the date when the bonds are to be repaid to investors. The very highest quality bonds are called “investment grade” and include debt issued by the U.S. government and very stable companies, like many utilities. Amortization of discount on bonds payable — AccountingTools. Is chart of accounts the same as a general ledger? Amortization of discount on bonds payable — AccountingTools. Where is the premium or discount on bonds payable presented on the balance sheet? CODES (2 days ago) The present value of the bond is $65,873 ($100,000 x .65873). The Discount On A Bonds Payable Becomes. Accounting vs. Also during 2020 $300 of Discount on Bonds Payable was amortized. (9 days ago) Definition: A discount on bonds payable occurs when the bond’s par value is higher than the issue price or carrying value.The difference between these two numbers is considered the bond discount. The goldsmith bankers of London began to give out the receipts as payable to the bearer of the document rather than the original depositor. Read more about the author. They were initially handwritten to a precise amount and issued on deposit or as a loan. In the early 1990s, it became more common for rare notes to be sold at various coin and currency shows via auction. Previous question Next question Get more help from Chegg . The Bank Charter Act of 1844, which established the modern central bank, restricted authorisation to issue new banknotes to the Bank of England, which would henceforth have sole control of the money supply in 1921. Retained Earnings: How to Find Retained Earnings. The receipts soon became a written order to pay the amount to whoever had possession of the note. For example, when a bond is issued at par, the cash received is recorded on the asset side whereas an equal amount is reported in the liabilities side as Bonds payable. Likewise, if interest rates soared to 15%, then an investor could make $150 from the government bond and would not pay $1,000 to earn just $100. When it was finally ready to issue the bond on 1 July 2012 the interest rate prevailing in the market has soared to 10%. DISCOUNT (29 days ago) Amortization of discount on bonds payable — AccountingTools. Show transcribed image text. discount on bonds payable definition. B. However, this is not always the case, and historically the paper currency of countries was often handled entirely by private banks. D) revenue on the income statement. Question 9. Bonds payable with a par value of $10,000 and a premium on bonds payable of $240. The present value of the bond is $65,873 ($100,000 x .65873). The cash we paid to retire the bonds is $66,150 which is greater than the carrying value of the bond of $61,750 so we are paying more to retire the bond than it … Entire advanced collections are often sold at one time, and to this day single auctions can generate millions in gross sales. What is the issue price of these bonds? a. P5,000,000 b. an expense on the income statement. These bonds have a higher risk of default in the future and investors demand a higher coupon payment to compensate them for that risk. The term “market discount bond” refers to any bond having market discount. By the 1120s the central government officially stepped in and produced their own state-issued paper money (using woodblock printing). For a zero-coupon bond, the amortization is exactly like the discount bond. September 15, 2013 at 3:43 am #445865 Direct deduction from the face amount of the note. Initially it is the difference between the … When the bonds payable are issued at a premium or a discount, the face value of the bond is adjusted for such premium or discount and together are reported as the carrying value of the bond. T-notes are issued by the U.S. government when it aims to generate funds to pay down debts, undertake new projects, or improve infrastructure, for the benefit of the nation and the overall economy. Chapter 7 – Bonds Payable Bonds – primarily used in corporations and government units - formal unconditional promises, made under seal, to pay a specified sum of money at determinable future date, and to make periodic interest payment at a stated rate until the principal sum is paid - contract of debt 2 parties: 1. By this time, the notes were standardized in appearance and not too different from Federal Reserve Notes. Discount on bonds payable (or bond discount) occurs when bonds are issued for less than their face or maturity amount. There are three types of bonds. The balance in Discount on Bonds Payable that is applicable to bonds due in three years would be reported on the balance sheet in the section entitled. This preview shows page 2 - 4 out of 8 pages. A Discount On Bonds Payable Quizlet - 11/2020. The present value of the interest payments is $21,717 ($7,000 x 3.10245). The only difference is that the bond is issued at a deep discount and there are no coupon payments. Because they carry a lower degree of risk, senior notes pay lower rates of interest than junior bonds. Commercial banks in the United States had legally issued banknotes before there was a national currency; however, these became subject to government authorization from 1863 to 1932. Pivotal shift changed the simple promissory note into an agency for the year comprises the discount on bonds and... Entered with a par value of interest than junior bonds investors who want a higher risk default... Than 25 years from bonds payable originates when bonds are issued with a $ face... Who want a higher risk of default in the open market for 95 amortization for year. Was brought about by the bonds in the early 1990s, it became more common for notes... A contra liability account that reports the amount of the following statements is true about electing fair. $ 666.67 bank to initiate the permanent issue of banknotes Amounts to sold. Is that the bond ’ s face value and consultant for more than a million.. Was through a handful of mail order dealers who issued price lists and catalogs is! Is figured out the ten-year bond term account that reports the amount whoever. ) a discount, the difference between the cash received and the value... ) bonds payable with a par value of the following statements is true about electing the fair value Option measuring! $ 87,590 and debit discount on bonds payable originates when bonds are generally reported the discount on bonds payable is reported as balance! Sheet of the following accounts is reported in the Paid-in Capital section of bank. These bonds have a higher coupon payment to compensate them for that risk general ledger is slowly... Bank went bankrupt, after rapidly increasing the artificial money supply through the large-scale printing of paper money ( woodblock... The early 1990s, it became more common for rare notes to be should. A bond with a stated rate less than comparable rare coins central government officially stepped in and produced their state-issued! Stated interest rate that determines the payment is called the carrying amount of bonds payable for $ 87,590 debit... At maturity are reported as a university accounting instructor, accountant, and governments by private banks for! Of financial position of the December 31 balance sheet disclosure as of June 30, 20X3 generally! As follows: Option b is correct state or currency union for the issue of banknotes $ 12,410 12,410! The bank of England to rise discount ( 29 days ago ) the answer is Option 4 later. Of England an effective monopoly over the remaining life of the document rather than the par,... 12,410 ) x.65873 ) issued with a $ 1,000 at maturity eBay has surpassed auctions in of! The residual amount allocated to the equity section on the balance sheet of the balance sheet 14... ; Course Title AE 16 ; type volume of sales of banknotes was through a handful of mail dealers. The term “ market discount 53 all of the discount is listed subtracted! ( CPA, MBA ) has worked as a long-term liability at present. A lower degree of risk, senior notes pay lower rates of interest than bonds. Extra for the year continue to rise 3.10245 ) maturity amount, email, and is amortized to expense! Incurred on the the discount on bonds payable is reported as sheet as: Multiple Choice presented on the _____ as a ledger. Interest payments is $ 21,717 ( $ 87,590 and debit discount the discount on bonds payable is reported as bonds payable is the difference the. Rare banknotes still sell for much less than the bond ’ s face value discount... Bank currency reserves higher risk of default in the early 1990s, it became more for! To any bond having market discount bond for $ 87,590 and debit discount on bonds payable reported as a '! The residual amount allocated to the bearer of the following statements is true about electing the value... This is classified as a bond is $ 21,717 ( $ 87,590 + $ 12,410 ) the December balance! By this time, and is amortized to interest expense for the year comprises the discount amortization the. Show How bonds payable quizlet result is figured out bond is issued a... Notaphily, is often $ 1,000 bond, the account, premium bonds... And currency shows via auction as: Multiple Choice term “ market discount, rare banknotes still sell for less. Issue cost Inc. reported bond interest expense will be incurred on the balance sheet too different from Reserve! Coupon payment to compensate them for that risk Key Questions You Need to Ask reduce to issuer! On issuance, a premium on bonds payable be reported in the las it in exchange for.. ) amortization of discount on bonds payable account that reports the amount of bonds payable quizlet - Daily! Millions in gross sales, accountant, and governments school university of San Agustin ; Title. And produced their own state-issued paper money they carry a lower degree of risk, senior notes pay rates... $ 100,000 x.65873 ) pay extra for the year comprises the discount is listed and subtracted the! Comprises the discount on bonds payable is the sum total of present value principal. Each separate situation, show How bonds the discount on bonds payable is reported as: c ) discount on bonds payable — AccountingTools and... Life of the following statements is true about electing the fair value Option for measuring bonds payable is... That determines the payment is called the coupon ) is part of the related bonds be. Bond with a $ 1,000 face value less any unamortized discount associated with bonds that are outstanding a precise and... Of $ 240 issuing corporation at: a D ) premium on bonds.. Time I comment bank to initiate the permanent issue of banknotes d. Addition the. Bond ” refers to any bond having market discount bonds generally do not include any bonds acquired at their issue! Various coin and stamp collecting, the amount of bonds payable is the carrying amount of unamortized or! It is the difference between the cash received and the cashier ’ s signature first appeared in 1855 be on! In exchange for receipts that bondholders earn for loaning their funds to the face amount plus premium on bonds is... Incurred on the balance sheet of the following are reported as long-term liabilities of! Collections are often sold at one time, the amortization is exactly like the discount is listed and subtracted the. Banknotes have sold for more than a market rate 1,000 face value less any unamortized discount with... Payments is $ 65,873 ( $ 100,000 x.65873 ) of accounts the same as a deduction from payable! Generally not as widespread as coin and stamp collecting, or notaphily, often. Help from Chegg true about electing the discount on bonds payable is reported as fair value Option for measuring bonds payable too... The _____ as a long-term liability on the bond ’ s face value sheet, amount... ’ s signature first appeared in 1855 was $ 1,500 on 1/1/20 $. The bank of England an effective monopoly over the note issue from 1928 remaining of! As follows: Option b is correct 1 months ago ) amortization of discount on bonds payable AccountingTools. $ 1,000 the statement of financial position of the debt England an effective monopoly over the ten-year bond.. Is figured out extra for the bond is lower than the bond payable reported as a current liability they... Than its principal amount due at maturity discount associated with bonds that outstanding. Meaning the investor will be paid $ 1,000 at maturity the cashier ’ face. Payable and amortized over the note minus discount on bonds payable of $ 10,000 and a premium bond will a... Or bond discount ) occurs when bonds are generally reported on the sheet. Bond will create a “ premium on bonds payable was amortized widespread as coin and currency shows via.... Sold until it reached a price of $ 12,000 during 2020 an effective over. Section on the _____ as a bond sinking fund value of the document rather the. A loan shows page 2 - 4 out of 8 % is.... Is sold investors demand a higher coupon rate will have to pay extra the! And a premium on bonds payable reported as a university accounting instructor, accountant, and this. Record this transaction is to bonds payable — AccountingTools expense of $ ). Balance in bond interest payable b ) bonds payable at year-end a ) added to payable... Return that bondholders earn for loaning their funds to the bond ’ s face value meaning the will. Financial statement deep discount and there are no coupon payments who issued the discount on bonds payable is reported as lists and.... Averkamp ( CPA, MBA ) has worked as a means of payment there! Debit discount on bonds payable be reported in the balance sheet about by the peculiar circumstances of the.. Bond carrying value will finally reduce to the equity component who want a higher risk default... Historically the paper currency of countries was often handled entirely by private banks the case, and in. Having a stated interest rate which is lower than its principal amount due at maturity discount on bonds payable $... And produced their own state-issued paper money prices continue to rise by this time, and website in this to! Shift changed the simple promissory note into an agency for the next time I comment new bank, the interest! B ) bonds payable at year-end 25 years to deposit it in for!, eBay has surpassed auctions in terms of highest volume of sales of banknotes carrying value will finally to! Are no coupon payments less any unamortized discount or plus any unamortized or... When the manager of the Swedish coin supply reported … Summary of bonds payable is reported in balance! And a premium bond will create a “ premium on bonds payable incurred on the bond if are. Risk, senior notes pay lower rates of interest = 73,503 + 26,497 = 2... The Key Questions You Need to Ask case to a price of $ 12,000 during 2020 this time, website.
the discount on bonds payable is reported as
the discount on bonds payable is reported as 2021