Give answer Question: general accountingWhere does the offset appear when recordingaccrued interest on bonds payable?a) As a deduction from bonds payableb) In interest expense accountc) As part of bond premiumd) In other comprehensive income

Explanation of Accrued Interest: This represents interest that has been incurred but not yet paid on…

Answered: Question: general accounting Where does…

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter13: Long-term Liabilities

Section: Chapter Questions

Problem 9Q: What kind of account is the Discount on Bonds Payable? What kind of account is the Premium on Bonds...

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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.
What best describes the discount on bonds payable account? A liability An asset A contra liability An expense
What kind of account is the Discount on Bonds Payable? What kind of account is the Premium on Bonds Payable?
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
Describe the accounting for bonds payable, including bonds issued at face amount, bonds issued at a discount , nd bonds issued at a premium ?
When accounting for a bond whose interest is included in the face amount, the account Discount in Bonds Payable eventually is converted into Interest Payable Interest Receivable Interest Expense Interest Income
The Discount on Bonds Payable accounta. is an expense account.b. is a contra account to Bonds Payable.c. is expensed at the bond’s maturity.d. is a miscellaneous revenue account.
The journal entry a company makes for the payment of interest, interest expense, and amortization of bond premium is a.debit Interest Expense, credit Cash and Premium on Bonds Payable b.debit Interest Expense, credit Cash c.debit Interest Expense and Premium on Bonds Payable, credit Cash d.debit Interest Expense, credit Interest Payable and Premium on Bonds Payable
How do we compute for the Carrying Value beginning of a Bonds Payable? of a Notes Payable?Are there differences in the amortization table for Bonds Payable and Notes Payable? State the differences.
q3. For accounting purposes, interest expense recognized on bonds payable should be based on theA. effective interest rate, considering the issue price and the transaction costs.B. nominal interest rate.C. rate stated on the face of the bonds.D. market rate of interest on the reporting date.
The discount on bonds payable or premium on bonds payable is shown on the balance sheet as an adjustment to bonds payable to arrive at the carrying value of the bonds. Indicate the appropriate addition or subtraction to bonds payable: Premium on Bonds Payable Deduct Add Deduct Add Discount on Bonds Payable Add Deduct Deduct Add
The carrying value of Bonds Payable equalsa. Bonds Payable plus Discount on Bonds Payable.b. Bonds Payable minus Discount on Bonds Payable.c. Bonds Payable minus Premium on Bonds Payable.d. Bonds Payable plus Accrued Interest.

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Question: general accounting Where does the offset appear when recording accrued interest on bonds payable? a) As a deduction from bonds payable b) In interest expense account c) As part of bond premium d) In other comprehensive income