The carrying amount of bonds issued at a discount is calculated by:
A)subtracting Discount on Bonds Payable from Bonds Payable.
B)subtracting the sum of Discount on Bonds Payable and Interest Payable from Bonds Payable.
C)subtracting Interest Payable from Bonds Payable.
D)subtracting Interest Expense from Bonds Payable.

Question

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The carrying amount of bonds issued at a discount is calculated by subtracting Discount on Bonds Payable from Bonds Payable. This results in a lower carrying amount than the face value of the bond due to the discount.

The Carrying Amount of Bonds Issued at a Discount Is