Question

The balance in the Bonds Payable is a credit of $79,000. The balance in the Premium on Bonds Payable is a credit of $1,600. What is the bond carrying amount?

a. $1,600
b. $80,600
c. $79,000
d. $77,400

Answer 1

Answer:

b. $80,600

Explanation:

The computation of the bond carrying amount is shown below:

= Balance in the bond payable + premium on bond payable

= $79,000 + $1,600

= $80,600

Hence, the bond carrying amount is $80,600

We simply applied the above formula so that the correct value could come

And, the same is to be considered

Therefore the correct option is b.