Bonds payable should be reported as a long-term liability in the balance sheet of the issuer at:
A)Current market price.
B)Issue price, excluding any accrued interest at purchase date.
C)lower-of-cost-or-market.
D)Issue price plus any unamortized bond premium or less any unamortized discount.
E)Issue price less any unamortized bond premium or plus any unamortized discount.

Question

Quizplus · Accepted Answer

Bonds payable are reported on the balance sheet at their issue price adjusted for any unamortized premium or discount. This reflects the carrying amount of the debt, which changes over time as the premium or discount is amortized.

Bonds Payable Should Be Reported as a Long-Term Liability in the Balance