Several years ago,Bee Corporation issued $400,000,10% bonds for $380,000.The balance in the discount on bonds payable account at the end of the current year is $8,000.The balance sheet for the current year would show a net liability of:

Question

Quizplus · Accepted Answer

The net liability is calculated by subtracting the balance in the discount on bonds payable account from the face value of the bonds. Thus, $400,000 (face value) - $8,000 (discount) = $392,000.

Several Years Ago,Bee Corporation Issued $400,000,10% Bonds for $380,000