The balance in the Bonds Payable account is a credit of $24,500.The balance in the Premium on Bonds Payable account is a credit of $1,000.The balance sheet will report the bond balance as $23,500.

Question

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The bond balance on the balance sheet is reported as the Bonds Payable balance plus the Premium on Bonds Payable, which totals $25,500 ($24,500 + $1,000).

The Balance in the Bonds Payable Account Is a Credit