[Andrew808]

I understand bonds fairly well, but am hung up on one small portion.

My understanding is as follows:
Bonds Payable @ yr 1 = PV of Principal + Payments at coupon rate
Interest Payable = @ coupon rate
Interest Exp = @ coupon rate +disc. amort -prem. amort
Principal Payment = due in full @ maturity

Now if the bond matures 12/31 of Year 10, and i’m reporting at 12/31 Year 9, is the principal reclassified as a Current Liability @ 12/31 Year 9 since it’s due within 12mo of the BS date?

Also, is there ever a time where the bond payments will include a portion of the principal? My understanding is that it is not paid concurrently with interest payments; and only Trade Notes Payable factors in the principal payments with the interest payments on the note.

Any help is appreciated!