Premium on Bonds Payable is an adjunct liability account, as it increases the carrying value of the bond.

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Premium on Bonds Payable is a liability account that reflects the excess of the issue price over the face value of the bond. It is added to the face value of the bond to calculate the carrying value, which is the total amount that needs to be paid to bondholders at maturity. Therefore, Premium on Bonds Payable increases the carrying value and is classified as an adjunct liability account.

Premium on Bonds Payable Is an Adjunct Liability Account, as It