Use the present value and future value tables included in Appendix 8 and on the textbook companion website.
- Just before bonds are retired, the balance in the Bonds Payable account is equal to the bond's

Question

Use the present value and future value tables included in Appendix 8 and on the textbook companion website. 
- Just before bonds are retired, the balance in the Bonds Payable account is equal to the bond's

Quizplus · Accepted Answer

When bonds are retired or paid off, the balance in the Bonds Payable account should be equal to the bond's face value, which is the amount the company borrowed when the bonds were issued. This is because any discounts or premiums would have already been amortized over the life of the bond and applied to the Bonds Payable account, and any interest to be paid would have been accrued separately in an Interest Payable account. The issuance price, while important for calculating the initial proceeds of the bond issuance, is not relevant to determining the balance in the Bonds Payable account at retirement. Therefore, the correct answer is A) Face value.

Use the Present Value and Future Value Tables Included in Appendix