Classifying Debt Accounts into the Balance Sheet or Income Statement Indicate the proper financial statement classification (balance sheet or income statement) for each of the following accounts, using (B) for balance sheet or (I) for income statement: a. Gain on Bond Retirement e. Bond Interest Expense b. Discount on Bonds Payable f. Bond Interest Payable (due next period) c. Mortgage Notes Payable d. Bonds Payable h. Loss on Bond Retirement g. Premium on Bonds Payable a. b. C. d. e. g. h.