The balance in Premium on Bonds Payable should be reported as a deduction from Bonds Payable on the balance sheet.

Name: The balance in Premium on Bonds Payable should be reported as a deduction from Bonds Payable on the balance sheet.
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The balance in Premium on Bonds Payable is added to Bonds Payable on the balance sheet, reflecting the additional amount over the face value that investors paid for the bonds.

The Balance in Premium on Bonds Payable Should Be Reported