In the balance sheet the account Premium on Bonds Payable is
A) added to bonds payable.
B) deducted from bonds payable.
C) classified as a stockholders' equity account.
D) classified as a revenue account.

Question

Quizplus · Accepted Answer

Premium on Bonds Payable is added to the Bonds Payable account on the balance sheet, reflecting the additional amount over the face value that investors are willing to pay for the bonds.

In the Balance Sheet the Account Premium on Bonds Payable