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Using the straight-line method, we can amortize the $15,000 bond discount by dividing it by the 3 years life of the bonds which gives the result of $5,000 per year. For tax-exempt and taxable bonds, this adjustment happens automatically when you enter the https://gps-lib.ru/gpsnews/index-2350.html amount from Box 13 and Box 11 in the 1099-INT section of

From the bond amortization schedule, we can see that at the end of period 4, the ending book value of the bond is reduced to 120,000, https://livinghawaiitravel.com/real-estate and the premium on bonds payable (2,204) has been amortized to interest expense. The final bond accounting journal would be to repay the par value of the bond