Issuance and Retirement of Bonds: Income Statement Presentation
Chris Mills Company issued its 9%, 25 year mortgage bonds in the principal amount of $5,000,000 on January 2, 1993, at a discount of $250,000, which it proceeded to amortize by charges to expense over the life of the issue on a straight-line basis. The indenture securing the issue provided that the bonds could be called fo