Assume that Smith Co. amortizes premiums and discounts on bonds payable at the end of the year rather than when interest is paid. What accounts would be debited and credited to record (a) the...

Assume that Smith Co. amortizes premiums and discounts on bonds payable at the end of the year rather than when interest is paid. What accounts would be debited and credited to record (a) the amortization of a discount on bonds payable and (b) the amortization of a premium on bonds payable?

Q4. What is meant by the phrase “time value of money”? What is a mortgage note? When a corporation issues bonds at a discount, is the discount recorded as income when the bonds are issued? Explain.