Chapter 12, Problem 12RQ

To determine

Bonds Payable: Bonds payable are referred to long-term debts of the business, issued to various lenders known as bondholders, generally in multiples of $1,000 per bond, to raise fund for financing the operations.

Discount on bonds payable: It occurs when the bonds are issued at a low price than the face value.

To identify: The types of account of discount on bonds payable

To determine

To Explain: Normal balance of discount on bonds payable account.

To determine

To Explain: The treatment of balance of discount on bonds payable in determining carrying amount of a bond.