On 31 December 2016,Clark Sales has a Debentures payable balance of $93,000 and a Discount on debentures payable of $6350.On the balance sheet,how will this information be shown?
A)$93,000
B)$93,000 less one-tenth of $6350 for a net balance of $92,365
C)$93,000 less discount of $6350 for a net balance of $86,650
D)$93,000 plus discount for a total balance of $99,350

Question

Quizplus · Accepted Answer

The balance sheet will show the net balance of the Debentures payable after deducting the discount. Therefore, the correct option is C, which shows the Debentures payable balance of $93,000 less the Discount on debentures payable of $6,350 for a net balance of $86,650.

On 31 December 2016,Clark Sales Has a Debentures Payable Balance