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If a premium on a bonds payable transaction is not amortized, what are the effects on interest expense and total stockholders' equity?
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If a premium on a bonds payable transaction is not amortized, what are the effects on interest expense and total stockholders' equity?

User Wotaskd
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Answer and Explanation:

A bond premium which is payable on bond is amortized will be amortized with a charge to the premium and an a good representative for intrigue cost, lessening it. On the off chance that amortization isn't recorded, intrigue cost isn't appropriately decreased and is exaggerated. The exaggeration of intrigue cost will bring modest representation of the truth of net gain and a modest representation of the truth of value

User Sejal
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