Carrying Amount of Bond Formula?

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  • March 18, 2018 at 2:22 pm #1739769
    Anonymous
    Inactive

    Does this sound right to you…?

    Carrying Amount of bond @ Premium = Carrying Amt – (Interest Received – Interest Income)

    Carrying Amount of bond @ discount = Carrying Amt + (Interest Income – Interest Received)

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  • March 19, 2018 at 9:26 pm #1742153
    Anonymous
    Inactive

    This looks right to me. For discount, it's carrying amount plus amortization (interest exp – interest payment)
    and for premium it's carrying amount minus amortization (interest payment minus interest exp).

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