The balance in the Bonds Bonds Payable Account of Beta Corporation shows a credit of $120,000. The balance in the Premium on Bonds Payable Account shows a credit of $2,500. What is the bond carrying amount? a. $122,500 b. $120,000 c. $117,500 d. $2,500

Principles of Accounting Volume 1
19th Edition
ISBN:9781947172685
Author:OpenStax
Publisher:OpenStax
Chapter13: Long-term Liabilities
Section: Chapter Questions
Problem 16MC: Keys Inc. issued 100 bonds with a face value of $1,000 and a rate of 8% at $1,025 each. The journal...
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What is the bond carrying amount on these general accounting question?

The balance in the Bonds
Bonds Payable
Account of Beta Corporation shows a
credit of $120,000. The balance in the
Premium on Bonds Payable Account
shows a credit of $2,500. What is the
bond carrying amount?
a. $122,500
b. $120,000
c. $117,500
d. $2,500
Transcribed Image Text:The balance in the Bonds Bonds Payable Account of Beta Corporation shows a credit of $120,000. The balance in the Premium on Bonds Payable Account shows a credit of $2,500. What is the bond carrying amount? a. $122,500 b. $120,000 c. $117,500 d. $2,500
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ISBN:
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