The carrying amount of bonds is equal to:
A)the face value of the bonds less the discount on bonds payable.
B)the face value of the bonds plus the premium on bonds payable.
C)the face value of the bonds less the premium on bonds payable.
D)both A and B.

Question

Quizplus · Accepted Answer

The carrying amount of bonds is equal to the face value of the bonds less the discount on bonds payable. The premium on bonds payable is added to the face value of the bonds to arrive at the total cash proceeds received from the issuance of bonds, but it does not affect the carrying amount.

The Carrying Amount of Bonds Is Equal To