Bond Amortization Methods. If you issue a bond at other than its face, ... You debit the bond premium by the $45,000 interest payment minus the $41,640 interest expense, ...

Calculating bond premium amortization using the straight-line method couldn't be simpler. First, calculate the bond premium by subtracting the face value of the bond from what you paid for it.

To figure out how much you can amortize each year, you take the unamortized bond premium and add it to the face value. Then multiply the result by the yield to maturity, and subtract it from the ...