Asked by
ziyanda madikane
on Nov 13, 2024
Verified
The balance in Premium on Bonds Payable should be reported as a deduction from Bonds Payable on the balance sheet.
Premium On Bonds Payable
The amount by which the bond's selling price exceeds its face value, reflecting additional cost to the issuer but higher interest income for the investor.
Balance Sheet
A financial overview capturing a company’s holdings, liabilities, and the proportion of equity owned by shareholders, pegged at a specific date.
Deduction
An amount that is subtracted from gross income or total expenses, used to reduce taxable income or the amount owed.
- Become proficient in the theories and mathematical operations related to the issuance of bonds, covering premiums, discounts, and the carrying amount.
Verified Answer
AH
Learning Objectives
- Become proficient in the theories and mathematical operations related to the issuance of bonds, covering premiums, discounts, and the carrying amount.