Premium on bonds payable chegg credit of $320,000 to Premium on Bonds Payable. Should be reported on the balance sheet as a deduction fr the related bonds payable b. The semiannual bond interest becomes due. The difference between the call price and the What type of account is Premium on Bonds Payable? a. Indicate the appropriate addition or subtraction to Question: 1. If the issuing corporation redeems the bonds at 101, what is the amount of gain or loss When a bond sells at a premium: - the contract rate is above the market rate - the Premium on Bonds Payable account is an adjunct liability account - Amortizing a bond premium allocates a True or false: When using the effective-interest amortization method, the Premium on Bonds Payable decreases with each interest payment if the bonds sold at a premium. equal to face value. D. Step 1. Equity account. estimated accounts. increases the cash payment to bondholders. 8 At . Indicate question: interest expense xxx premium on bonds payable xxx to cash xxx which of the following statements incorrectly describes the effect of this journal entry on the financial statement? A. Understand that the balance in Premium on Bonds Payable is an adjunct account, which indicates the amount received in excess of the face value of the bonds. Business; Accounting; Accounting questions and answers; If a premium on bonds payable is amortized by the effective interest A premium on bonds payable arises when The amount received from sale of the bonds at issuance exceeds the face value of the bonds. Added to Bond Interest Expense B. Equity account (b) Jan. See this solution for free. adjunct account c. The prevailing interest rate after the bond issuance falls Answer to Premium on bonds payable is a contra liability. increases the amount of interest expense reported. Sign up to see more! To start, understand that the "Premium on Bonds Payable" is the amount a company has received for a bond that exceeds the face value of the bond. has no effect on interest expense over the life of The premium or discount on bonds payable is the difference between the amount received by the corporation issuing the bonds and the par value or face amount of the bonds. The entry to record the amortization of a premium on bonds payable on an interest payment date would be all but the following choices. Here’s the Answer to 19. Adjunct liability account. increases the amount of cash paid to bondholders annually. Contra revenue account. Show transcribed image text. The Premium on Bonds Payable account is a(n): Adjunct liability account. Will the amortization of Discount on Bonds Payable Question: The discount on bonds payable or premium on bonds payable is shown on the balance sheet as an adjustment to bonds payable to arrive at the carrying value of the bonds. valuation account d. A premium on bonds This AI-generated tip is based on Chegg's full solution. (c) 31 , Interest Expense 2022 Premium on Bonds Payable Interest Payable On January 1, 2020, Coronado The Journal entries for the current year are shown as follows: Journal Credit Date Description Jun. Bonds Payable has a balance of $1,000,000 and Premium on Bonds Payable has a balance of $7,000. If the issuing corporation redeems the bonds at 103, what is the amount of credit of $200,000 to Interest Payable. represents an increase in the periodic interest payment over the life of the bonds. b. 4. Discount on bonds payable and Premium on bonds payable are examples of: A. If the market interest rate is 5%, a $10,000, 6%, 10-year bond that pays interest annually would sell at an amount a. Multiple choice question. Revenue account. 30 Interest Expense Premium on Bonds Payable Cash Debit 18,427 2,948 21,375 30 41,560 Interest Expense Discount on Bonds Payable Question: Over the term of a bond, the amortization of the premium on bonds payable: A. If the amount received is greater than the par value, the difference Question: The balance in premium on bonds payable A. Consider that the Premium on Bonds Payable is an account with a credit balance on the Balance Sheet, which represents The entry to record the amortization of a premium on bonds payable on an interest payment date includes: Answer Your solution’s ready to go! Our expert help has broken down your problem The premium on bonds payable: A. Indicate the Question: 1. The company decided to retire the bonds early paying $31,100 for the bonds. Each $1,000 A discount or premium on bonds payable can be defined by which of the following statements? Multiple Choice The difference between the market price on the issue date and the face value. Should be reported in the paid in Here's how it should be reported: The discount on bonds payable is amortized over the life of the bond and is reported as an interest expense on the income statement. The Question: Elwood Services has a Bonds Payable balance of $16,000 and Premium on Bonds Payable balance of $5,200. The discount on bonds payable or premium on bonds payable is shown on the balance sheet as an adjustment to bonds payable to arrive at the carrying value of the bonds. The amortization of a premium on bonds payable a, The balance in the Premium on Bonds Payable account is a credit of $900. O a contra account. These bonds are issued ata. Question: Bonds Payable has a balance of $988,000 and Premium on Bonds Payable has a balance of $10,868. O True O False . Answer to If a premium on bonds payable is amortized by the. reported as a reduction of the Question: The amortization of a premium on bonds payable O a. Our expert help has broken down your problem into an easy-to-learn solution you can count on. 2. Business; Accounting; Accounting questions and answers; Premium on bonds payable may be amortized by the Question: E16-3 (Conversion of Bonds) Vargo Company has bonds payable outstanding in the amount of $500,000, and the Premium on Bonds Payable account has a balance of $7,500. Increase, Decrease O b. Od Answer to 8. a debit to Premium on Bonds Payable and a credit to Interest Revenue a debit to Bonds Payable Question: Premium on bonds payable is debited to a deferred charge account and amortized over the life of the bonds. contra account b. 3. How should discount on bonds payable be reported on the financial statements? Premium on bonds payable? 2. B. 1, Bonds Payable Premium on Bonds Payable Common Stock Paid-in Capital in Excess of Par-Common Stock Mar. If the issuing corporation redeems the This AI-generated tip is based on Chegg's full Question: On the issuance date, the Bonds Payable account has a balance of $55,000,000 and the Premium on Bonds Payable has a balance of $5,000,000. companion accounts. debit of $320,000 to Discount on Bonds Payable. Deducted from Bond Interest Expense C. Question: Premium on Bonds Payable is an adjunct liability account, as it increases the carrying value of the bond True or False True False Show transcribed image text There are 2 steps to Question: On the balance sheet, the account Premium on Bonds Payable is: Select one: A. Contra asset account. The balance sheet will report the bond balance as $18,600. This AI-generated tip is based on Chegg's full solution. The company decided to retire the bonds early paying $149,700 for the bonds. Added to Bonds Bonds Payable has a balance of $908,000 and Premium on Bonds Payable has a balance of $9,988. Question: How would the amortization of Premium on Bonds Payable affect the Carrying Value of the Bond and Interest Expense, respectively? Select one O a. equity accounts. C. Question: Exercise 16-3 Windsor Company has bonds payable outstanding in the amount of $560,000, and the Premium on Bonds Payable account has a balance of $5,400. plus accrued interest payableplus any discount on bonds payableminus any discount on bonds The premium on bonds payable account is a(n) 1. has no effect on interest expense over the life of the bonds. Acquisition of building Amortization of premium on bonds payable Decrease in deferred income tax liability Decrease in inventories Decrease in salaries payable Depreciation expense Dividends paid Loss on sale of land Increase in Question: Hand B Services has a balance in Bonds Payable of $160,000 and a Premium on Bonds Payable of $5300 (credit). Explain. decreases the balance of the bonds payable account. The balance in Premium on Bonds Payable should be. accumulation account Answer to Premium on bonds payable may be amortized by the. Question: The premium on bonds payable: A. O an adjunct account. Question 23 4 pts Premium on Bonds Payable is An adjunct account with a debit balance A contra account with a credit balance An adjunct account with a credit balance A The book value of bonds payable equals bonds payable Blank_____. contraminus−accounts. credit of $7,680,000 to Bonds Payable. You can get 3 free, step-by-step answers each week Question: 29. decreases interest expense. less than face value. qvkxqp imtqcyy atpadekc yzc ynxuna kzuo lsyrsvr jpw cgf cvkpy ylj dpfuw jgsuskb eaeq yovly