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 stockholders' equity account.
D) classified as a revenue account.

Question

Quizplus · Accepted Answer

Premium on Bonds Payable is added to Bonds Payable on the balance sheet as it represents the amount by which the bond's issue price exceeds its face value.

In the Balance Sheet the Account Premium on Bonds Payable