WebbDiscount on Bonds Payable is a contra liability account that is debited for the purpose of offsetting a credit on a liability account Bonds Payable and reporting the net book value, … WebbAnalyzing, journalizing, and reporting bond transactions. Johnny’s Hamburgers issued 8%, 10-year bonds payable at 85 on December 31, 2024. At December 31, 2024, Johnny reported the bonds payable as follows: Long-term Liabilities: Bonds Payable $ 300,000. Less: Discount on Bonds Payable (36,000) $ 264,000
Discount on Bonds Payable Example Business Accounting
Webbpremium on bonds payable definition A liability account with a credit balance associated with bonds payable that were issued at more than the face value or maturity value of the … Webb31 dec. 2024 · Accounts payable 1,900, Bonds payable 3,400, Premium on bonds payable 200, Defered tax liability 400, Dividends payable 500, Income tax payable 900, Note payable, due January 31, 2024 600, The deferred tax liability is based on temporary differences that will reverse in 2024. can i accept multiple waitlist offers
Discount on Bonds Payable: All You Need To Know …
Webb21 sep. 2024 · Premium on bonds payable is the excess amount by which bonds are issued over their face value. This is classified as a liability, and is amortized to interest … WebbLike the Premium on Bonds Payable account, the discount on bonds payable account is a contra liability account and is “married” to the Bonds Payable account on the balance sheet. The Discount will disappear over time as it is amortized, but it will increase the interest expense, which we will see in subsequent journal entries. WebbQuestion: The premium on bonds payable account is a (n) 1. Revenue account 2. Adjunct liability account 3. Contra revenue account 4. Contra asset account . Equity account. The … fitness argumentative essay topics