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bond issue costs

(Dictionary)

Author:
Harold Averkamp, CPA, MBA

Definition

Bond Issue Costs is a contra liability account that is reported on the balance sheet as a reduction of the balance in Bonds Payable. Bond Issue Costs include the professional fees and registration fees associated with the issuance of bonds. The amount in the account Bond Issue Costs will be amortized (systematically written off) to Interest Expense over the life of the bonds.

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About the Author

Harold Averkamp

For the past 52 years, Harold Averkamp (CPA, MBA) has
worked as an accounting supervisor, manager, consultant, university instructor, and innovator in teaching accounting online. He is the sole author of all the materials on AccountingCoach.com.

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