On the maturity date of bonds issued at a premium:
A)the Premium on Bonds Payable account is zero
B)the carrying value of the bonds is greater than face value
C)the carrying value of the bonds is less than face value
D)both a and b are correct

Question

Quizplus · Accepted Answer

On the maturity date, the Premium on Bonds Payable account is fully amortized, making it zero, and the carrying value of the bonds equals the face value.

On the Maturity Date of Bonds Issued at a Premium