Question: Does interest expense increase or decrease when a bond premium is amortized? Does issuing a bond at a discount increase or decrease interest expense over

Does interest expense increase or decrease when a bond premium is amortized? Does issuing a bond at a discount increase or decrease interest expense over the life of the bond? How are savings bonds different from a corporate bond? Edward Inc. issued bonds with a $500,000 face value, 10% interest rate, and a 4-year term on July 1, 2018 and received $480,000. Interest is payable semiannually. The discount is amortized using the straight-line method. Prepare journal entries for the following transactions. July 1, 2018: entry to record issuing the bonds Dec. 31, 2018: entry to record payment of interest to bondholders Dec. 31, 2018: entry to record amortization of discount

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