If the bond has matured by the time you repay it, the premium/discount will have already been amortized fully and will therefore no longer be on the BS. If the bond has not fully matured, any remaining premium/discount will be eliminated by an offsetting debit or credit during repayment, and the difference between the bond’s net book value (face value +/- premium/discount) and cash paid will result in a gain or loss on repayment.
What happens to the premium/discount amount on BS once you repay the bond for the face value, to make the bs balance?
If the bond has matured by the time you repay it, the premium/discount will have already been amortized fully and will therefore no longer be on the BS. If the bond has not fully matured, any remaining premium/discount will be eliminated by an offsetting debit or credit during repayment, and the difference between the bond’s net book value (face value +/- premium/discount) and cash paid will result in a gain or loss on repayment.
thank you!