Question

On January​ 1, 2019, the Bonds Payable account has a balance of​ $730,000. On December​ 31, 2019, the Bonds Payable account has a balance of​ $820,000. During​ 2019, one bond of​ $9,000 was retired. No discounts or premiums were amortized in 2019. What amount of new bonds were issued in​ 2019?

Answer 1

Answer: $99,000

Explanation:

Given the opening Balance of the Bond Payable account as well as the Closing Balance and the bonds that were retired for the year, we can deduce the amount of new bonds issued using the following formula,

Opening Balance + Bonds Issued - Retired bonds = Closing Balance

Making Bonds Issued the subject we have,

Bonds Issued = Closing Balance - Opening Balance + Retired bonds

Bonds issued is therefore,

= 820,000 - 730,000 + 9,000

= $99,000

$99,000 was the Amount of new bonds issued in 2019.