On 31 December 2016,Lopez Sales has a Debentures payable balance of $75,000 and a Premium on debentures payable of $6000.On the balance sheet,how will this information be shown?
A)$75,000
B)$75,000 less one-tenth of $6000 for a net balance of $74,400
C)$75,000 less premium of $6000 for a net balance of $69,000
D)$75,000 plus a premium of $6000 for a net balance of $81,000

Question

Quizplus · Accepted Answer

The debentures payable balance is increased by the premium, so the net balance is $75,000 plus $6,000, totaling $81,000.

On 31 December 2016,Lopez Sales Has a Debentures Payable Balance