On the issuance date, the Bonds Payable account had a balance of $50,000,000 and Premium on Bonds Payable had a balance of $1,000,000.What was the issue price of the bonds?
A) $50,000,000
B) $49,000,000
C) $51,000,000
D) Unable to determine from the information given

Question

Quizplus · Accepted Answer

The issue price of the bonds is the sum of the Bonds Payable account balance ($50,000,000) and the Premium on Bonds Payable ($1,000,000), totaling $51,000,000.

On the Issuance Date, the Bonds Payable Account Had a Balance