What is unamortized premium and bonds issue cost?

3 Answers

  • 9 years ago
    Favorite Answer

    A. Un-amortized Premium:

    1. It is the balance of premium paid over the market price of securities purchased that remains to be written off against expenses.

    2. Please Read more:


    B. Bonds Issue Cost:

    1. It means expenses incurred in preparing and selling a bond issue such as legal, underwriting, accounting, commission, printing, promotion, and registration fees.

    2. These costs represent a deferred charge that is amortized using the straight-line method over the period the bonds are outstanding (date of issue to the maturity date).

    3. It should be noted that the amortization starts from the date the bonds are sold and not the date of the bonds (which may be before the issue date).



  • Anonymous
    4 years ago

    Unamortized Bond Issue Costs

  • Anonymous
    5 years ago

    on january 1, 2014, Henderson corporation redeemed 661,400 of bonds at 96.At the time of redemption, the unamortized premium was 19,482 and unamortized bond issue cost were 6,614. record journal entry to record the reaquistion of the bonds

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