The balance in the Bonds Payable account is a credit of $72,000. The balance in the Discount on Bonds Payable is a debit of $3,500. The balance sheet will report the bond balance as $75,500.

Question

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The bond balance on the balance sheet is reported as the net amount, which is Bonds Payable ($72,000 credit) minus Discount on Bonds Payable ($3,500 debit), resulting in $68,500.

The Balance in the Bonds Payable Account Is a Credit