Please read and respond to the three questions below. Please comment or respond to at least two of your classmates in addition to your initial post. Do not forget to cite your sources.

1. Under what conditions of bond issuance does a discount on bonds payable arise? Under what conditions of bond issuance does a premium on bonds payable arise?

2. How should discount on bonds payable be reported on the financial statements? Premium on bonds payable?

3. What are the two methods of amortizing discount and premium on bonds payable? Explain each.