[Anonymous]

When you issue a bond and it has bond issue costs, how do you take into account the bond issue costs, since it is amortized?

For instance, is this journal entry how you take into account bond issue costs?

Dr Cash

Dr Bond Issue Costs

Dr Discount

Cr Bond Payable

[EuroAddict]

Would help to see #'s but the bond issue cost will get amortized over the life of the bond. That JE looks correct if you have a discount.

-----------------------------
BEC - 77, 03/2015 (first try)
FAR - 79, 05/2015 (second try)
REG - 83, 12/2015 (first try)
AUD - 84, 03/2015 (first try)

I got 99 problems but the CPA ain't one.

[Fanalyst]

Say you issue a $1,000 bond at 99 with $10 issue costs. You would only receive $980 in net proceeds.

Dr Cash $980

Dr Discount 10

Dr Unamortized Debt Cost $10

Cr Bonds Payable $1000

Someone correct me if I'm being an idiot.

[mrgriff21]

Looks right to me Fanalyst

A - 84
R - 81
B - 77
F - 81

[Author]

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