The balance in Unamortized Discount on Bonds Payable should beOa. reported separately in the Current Liabilities section of the balance sheefOb. added to the face amount of the related bonds payable on the balance sheet.O C. reported in the Paid-In Capital section of the balance sheet.Od. reported on the balance sheet as a deduction from the face amount of the related bonds payable.

Unamortized discounts on bonds payable are considered as a decrease in carrying value or book value…

Answered: The balance in Unamortized Discount on…

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter9: Long-term Liabilities

Section: Chapter Questions

Problem 5MCQ: The premium on bonds payable account is shown on the balance sheet as A contra asset. A reduction of...

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Similar questions

The premium on bonds payable account is shown on the balance sheet as A contra asset. A reduction of an expense. An addition to a long-term liability. A subtraction from a long-term liability.
Gains on the redemption of bonds are reported in the Other Revenue section of the income statement. O Tre O False
Bond issuance costs must be reported separately as deferred charges and charged to expense over the life of the bond issue. t or f?
Under IFRS, bond issuance costs, including the printing costs and legal fees associated with the issuance, should be:(a) expensed in the period when the debt is issued.(b) recorded as a reduction in the carrying value of bonds payable.(c) accumulated in a deferred charge account and amortized over the life of the bonds.(d) reported as an expense in the period the bonds mature or are redeemed.
On the balance sheet, the account Premium on Bonds Payable is: Select one: a. Added to Bonds Payable b. Added to Bond Interest Expense c. Deducted from Bond Interest Expense d. Deducted from Bonds Payable
Bond issue costs, such as printing fees, legal fees, commissions, etc. are most appropriately accounted for by a. charging them to an expense account in the year the bonds are actually sold. b. debiting them to unamortized bond issue costs, setting them as a deferred charge on the statement of financial position, and amortizing them in a manner similar to bond discount over the life of the bond. c. charging them to an expense account in the year the bonds are originally dated whether or not they are sold in that year. d. considering them in the measurement of the bonds payable.
In the balance sheet, the account Discount on Bonds Payable is Group of answer choices added to bonds payable deducted from bonds payable classified as a stockholders equity account classified as an asset
When bonds are acquired between interest payment dates, the price paid for the bond is: a. equal to the acquisition cost. b.increased by a charge for accrued interest to the date of purchase. c.decreased by a credit for accrued interest to the date of purchase. d.equal to the par value increased by a charge for accrued interest to the date of purchase.
Describe the accouting for bonds payaable, including bonds issued at face amount , bonds issued at a discount, and bonds issued at a premium.
The following items are found in the financial statements.Indicate how each of these items should be classified in the financial statements. Classification (a) Discount on bonds payable. select a financial statement Balance SheetIncome statement (b) Interest expense (credit balance). select a financial statement Balance SheetIncome statement (c) Unamortized bond issue costs. select a financial statement Balance SheetIncome statement (d) Gain on repurchase of debt. select a financial statement Balance SheetIncome statement (e) Mortgage payable (payable in equal amounts over next 3 years). select a financial statement Balance SheetIncome statement…
Interest revenue on bonds is reported as Group of answer choices an addition to the investment in bonds account part of comprehensive income but not as part of net income part of Other Revenue (Loss) part of income from operations
Bond premium should be reported in the statement of financial position A. at the present value of the future reduction in bond interest expense due to the premium. B. as a direct addition to the face amount of the bonds. C. as a deferred credit. D. along with other premium accounts such as those resulting from share capital transactions.

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