Insurance
Bond Premium Amortization — Monthly
Amortizing the premium paid on a bond purchase, reducing interest income each month.
| Account Name | Type | Debit ($) | Credit ($) |
|---|---|---|---|
| Investment Income — Bond (EIR) | Revenue (-) | 833.00 | - |
| Investment Securities — Bond (Carrying Value) | Asset (-) | - | 833.00 |
💡 Accountant's Note
Premium amortization reduces the bond's carrying value toward par over its life. Each month, the carrying value decreases and effective interest income is lower than the coupon received.
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