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 liability account.
D)A and C.

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. It is also classified as a liability because it represents an amount that the issuer will eventually have to pay to bondholders, in addition to the face value of the bonds.

In the Balance Sheet,the Account,Premium on Bonds Payable,is