The straight-line method is the simplest way to account for the amortization of a bond on a company's financial statements. This method attributes equal interest expense to every accounting period ...

Under the straight line method, the premium or discount on ... ($10,000 in premium divided by the 10-year life of the bond). Interest expense is $7,000 each year (cash interest of $8,000 minus ...

When a bond has an interest rate that's higher ... more about bond premium amortization and one method of calculating it known as the straight-line method. How to use the straight-line ...

It is considered preferable to the straight-line method of figuring premiums ... the preferred method for amortizing a bond. The amount of interest expense in a given accounting period thus ...

The straight line method spreads asset costs evenly over ... It is important to understand how capital expenses move through a company's financial statements. The cash costs of making, building ...

The interest expense, a non-operating cost ... The easiest way to account for an amortized bond is to use the straight-line method of amortization. Under this method of accounting, the bond ...

A company may decide to invest in the bonds of another company or borrow money through a term loan. The company must account for interest it pays or receives, including any imputed interest ...

Under the straight line method, the premium or discount on ... ($10,000 in premium divided by the 10-year life of the bond). Interest expense is $7,000 each year (cash interest of $8,000 minus ...