Question

The balance in the Bonds Payable account is a credit of $65,500. The balance in the Discount on Bonds Payable account is a debit of $2,150. How much is the bond's carrying amount?

Answer 1

Answer:

Bond's carrying amount = $63,350

Explanation:

This is a very trivial question and can be solved in just a very few lines.

Balance in Bonds Payable Account = $65,500

Discount on Bonds payable Account =  $2,150

The bond's carrying amount can be gotten by simply subtracting the discount on Bond's payable account from the balance in bonds payable account.

Carrying amount = (Balance in Bonds Payable Account) - (Discount on Bonds payable Account)

Carrying amount = $65,500 - $2,150

Carrying amount = $63,350