Any unamortized premium should be reported on the balance sheet of the issuing corporation as a.paid-in capital b.a direct deduction from the face amount of the bonds in the Liabilities section c.an addition to the face amount of the bonds in the Liabilities section d.a direct deduction from retained earnings

Answered: unamortized premium

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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Any unamortized premium should be reported on the balance sheet of the issuing corporation as

	a.	paid-in capital
	b.	a direct deduction from the face amount of the bonds in the Liabilities section
	c.	an addition to the face amount of the bonds in the Liabilities section
	d.	a direct deduction from retained earnings

Definition Definition Financial statement that provides a snapshot of an organization's financial position at a specific point in time. It summarizes a company's assets, liabilities, and shareholder's equity, detailing what the company owns, what it owes, and what is left over for its owners. The balance sheet serves as a crucial tool to assess the financial health and stability of a company, as well as to help management make informed decisions about its future investments and financial obligations.

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