Callable bonds:

Hi I had a question!

If we issue $500,000 (500, $1,000 bonds) at a premium of $27,000 and call back $250,000 worth of bonds (250 bonds) would we only amortize half of the premium or amortize the full $27,000?

I'm not sure if the journal would look like this:

	debit	credit
Bonds payable	250,000
Premium on bonds payable	13,500
Loss on cancellation of bonds payable	36500
Cash		300,000