indenture (plural indentures) (law) A contract which binds a person to work for another, under specified conditions, for a specified time (often as an apprentice). (law) A document, written as duplicates separated by indentations, specifying such a contract. An indentation. (Can we add an example for this sense?) Translations
What it is: Interest expense is the cost of money. Interest expense is recorded on the income statement. Let's assume you need $500,000 to buy a house. The price of borrowing that money is interest, and it is expressed as a percentage of the amount of money you obtain.
Company SD would record the amortization and interest expense using the following journal entry: In year 2 the carrying amount would be $93,662 ($92,420 plus the amortized bond discount of $1,242). This would lead to interest expense of $9,366. Since interest paid or payable would be the same i.e. $8,000 this would lead to a higher figure for bond discount amortized during the period.