The expense is amortized at the rate of 5000 per year for the term of the bond which is 10 years. Calculate the 2 percent allowable costs of issuance. Pin On General Knowledge Ad Principal and Interest is 100 Guaranteed by Assured Guaranty. . The expenses a company or government incurs in the process of issuing a bond. The periodic amortization of bond issuance costs is recorded as a debit to financing expenses and a credit to the other assets account. Many of these have to do with maintaining the accounting process including. If the issuer asserts that excess costs of issuance has been paid by a conduit. The additional amount is the bond premium. Answer 1 of 2. Get a Free Quote. Quick Online Application For All Types Of Surety Bonds In US. In simple words amortization of bond issue costs is the transfer of bond issue cost from asset to the debit side of profit and loss account. Define Bon