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The balance in the Bonds Payable account is a credit of $74,000. The balance in the Discount on Bonds Payable account is a debit of $3,650. What is the bond's carrying amount? O $3,650 O $70,350 O $74,000 O $77,650

The balance in the Bonds Payable account is a credit of $74,000. The balance in the Discount on Bonds Payable account is a debit of $3,650. What is the bond's carrying amount? O $3,650 O $70,350 O $74,000 O $77,650

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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**Question:** The balance in the Bonds Payable account is a credit of $74,000. The balance in the Discount on Bonds Payable account is a debit of $3,650. What is the bond's carrying amount? - ○ $3,650 - ○ $70,350 - ○ $74,000 - ○ $77,650 **Explanation:** To calculate the carrying amount of the bond, subtract the Discount on Bonds Payable from the Bonds Payable: Carrying Amount = Bonds Payable - Discount on Bonds Payable = $74,000 - $3,650 = $70,350 Thus, the correct option is **$70,350.**
Transcribed Image Text:**Question:** The balance in the Bonds Payable account is a credit of $74,000. The balance in the Discount on Bonds Payable account is a debit of $3,650. What is the bond's carrying amount? - ○ $3,650 - ○ $70,350 - ○ $74,000 - ○ $77,650 **Explanation:** To calculate the carrying amount of the bond, subtract the Discount on Bonds Payable from the Bonds Payable: Carrying Amount = Bonds Payable - Discount on Bonds Payable = $74,000 - $3,650 = $70,350 Thus, the correct option is **$70,350.**
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