The balance in the Bonds Payable account is a credit of $89,000. The balance in the Premium on Bonds Payable account is a credit of $990. The bond's carrying amount is $89,990.

Question

Quizplus · Accepted Answer

This is correct. The carrying amount of the bonds payable is calculated by adding the balance in the Bonds Payable account and the balance in the Premium on Bonds Payable account. Therefore, $89,000 + $990 = $89,990, which is the correct carrying amount.

The Balance in the Bonds Payable Account Is a Credit