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  3. which of the following statements about bond recor

Which of the following statements about bond recording is correct? When bonds are issued at...

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Accounting

image Which of the following statements about bond recording is correct? When bonds are issued at discount, for the issuer, interest expense is lower than interest payment in cash. When bonds are issued at discount, for the company that buys the bonds (the investor), interest revenue is lower than interest received in cash. When bonds are issued at premium, for the issuer, interest expense is lower than interest payment in cash. When bonds are issued at premium, the company that buys the bonds (the investor) will record the following entry: Dr Investment in bonds, Cr. Cash, and Cr. Premium on bonds

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