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Bond issue costs, such as printing fees, legal fees, commissions, etc. are most appropriately accounted for by * debiting them to unamortized bond issued costs, setting them as a deferred charge on the statement of financial position and amortizing them in a manner similar to bond discount over the life of the bond. adding them to any discount on bonds or subtracting them from any premium on bonds when the bonds are sold. charging them to an expense account in the year the bonds are originally dated whether or not they are sold in that year. O charging them to expense account in the year the bonds are actually sold.

Bond issue costs, such as printing fees, legal fees, commissions, etc. are most appropriately accounted for by * debiting them to unamortized bond issued costs, setting them as a deferred charge on the statement of financial position and amortizing them in a manner similar to bond discount over the life of the bond. adding them to any discount on bonds or subtracting them from any premium on bonds when the bonds are sold. charging them to an expense account in the year the bonds are originally dated whether or not they are sold in that year. O charging them to expense account in the year the bonds are actually sold.

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Bond issue costs, such as printing fees, legal fees, commissions, etc. are most appropriately accounted for by * debiting them to unamortized bond issued costs, setting them as a deferred charge on the statement of financial position and amortizing them in a manner similar to bond discount over the life of the bond. adding them to any discount on bonds or subtracting them from any premium on bonds when the bonds are sold. charging them to an expense account in the year the bonds are originally dated whether or not they are sold in that year. O charging them to expense account in the year the bonds are actually sold.
Transcribed Image Text:Bond issue costs, such as printing fees, legal fees, commissions, etc. are most appropriately accounted for by * debiting them to unamortized bond issued costs, setting them as a deferred charge on the statement of financial position and amortizing them in a manner similar to bond discount over the life of the bond. adding them to any discount on bonds or subtracting them from any premium on bonds when the bonds are sold. charging them to an expense account in the year the bonds are originally dated whether or not they are sold in that year. O charging them to expense account in the year the bonds are actually sold.
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