Balance Sheet:
Long-term debt is carried at the present value of the remaining cash payments discounted at the market rate existing when the debt was issued.
Issued at Par
Issued at a Premium
Issued at a Discount
Carried at face value
Carried at face value plus premium
Carried at face value less discount
The liability decreases as the premium is amortized to interest expense
The liability increases as the discount is amortized to interest expense

 
Cash Flow Statement:
Cash Flow from Financing
Cash Flow from Operations
Issuance of debt
Increased by cash received (present value of the bond at market interest rate)
No effect
Periodic interest payments
No effect
Decreased by interest paid [(coupon rate)(face or par value)]
Payment at maturity
Decreased by face (par) value