The balance in the Bonds payable account is a credit of $50,000.The balance in the Premium on bonds payable account is a credit of $900.The bond carrying amount is $50,900.

Question

Quizplus · Accepted Answer

The bond carrying amount is calculated by adding the Bonds payable account balance and the Premium on bonds payable account balance. 
$50,000 (Bonds payable) + $900 (Premium on bonds payable) = $50,900 (Bond carrying amount).

The Balance in the Bonds Payable Account Is a Credit