On the issuance date,the Bonds Payable account had a balance of $50,000,000 and Premium on Bonds Payable had a balance of $1,000,000.What was the issue price of the bonds in dollars?
A)$50,000,000
B)$49,000,000
C)$51,000,000
D)Unable to determine from the information given

Question

Quizplus · Accepted Answer

The issue price of bonds can be found by adding the Bonds Payable account balance and the Premium on Bonds Payable balance. Therefore, issue price of bonds = Bonds Payable account balance + Premium on Bonds Payable balance = $50,000,000 + $1,000,000 = $51,000,000. Hence, the answer is option C.

On the Issuance Date,the Bonds Payable Account Had a Balance