The Premium on Bonds Payable account is shown on the balance sheet as:

Question

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The Premium on Bonds Payable account represents the excess amount paid by the issuer of a bond over its face value. This excess amount is treated as a long-term liability and is added to the face value of the bond to arrive at its total value. Therefore, the Premium on Bonds Payable account is an addition to a long-term liability and is shown on the balance sheet as such.

The Premium on Bonds Payable Account Is Shown on the Balance