The balance in the Bonds Payable account is a credit of $99,000.The balance in the Premium on Bonds Payable account is a credit of $1,690.The bond's carrying amount is $100,690.

Question

Quizplus · Accepted Answer

The bond's carrying amount is calculated as the Bonds Payable balance plus the Premium on Bonds Payable balance, which equals $99,000 + $1,690 = $100,690. Therefore, the statement is true.

The Balance in the Bonds Payable Account Is a Credit