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 Discount on
Bonds Payable Bonds Payable

Question

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- Premium on Bonds Payable is added to Bonds Payable to arrive at the carrying value of the bonds.
- Discount on Bonds Payable is deducted from Bonds Payable to arrive at the carrying value of the bonds.

The Discount on Bonds Payable or Premium on Bonds Payable