Question: How does a company account for the difference between interest expense and the cash payment of interest when bonds are issued at less than their

How does a company account for the difference between interest expense and the cash payment of interest when bonds are issued at less than their face value?

The difference is accounted for using Bonds Payable.

The difference is accounted for using Amortization of Bond Discount.

In this situation the cash payment of interest will exceed interest expense.

How does a company account for the difference

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