Ask Question
2 April, 18:06

Any unamortized premium should be reported on the balance sheet of the issuing corporation as

+4
Answers (2)
  1. 2 April, 20:24
    0
    Answer:It should be an addition to the face amount of the bonds in the liability section. This is because a premium on a bond investment made is usually recorded in the account for investment and amortized over it's known useful life
  2. 2 April, 20:45
    0
    an addition to the face amount of the bonds in the liability section

    Explanation:

    When a bond is sold at a premium, it means that its market price was higher than its face value, e. g. face value = $100, market value = $105 results in a $5 premium.

    the journal entry for this example should be:

    Dr Cash 105

    Cr Bonds payable 100

    Cr Premium on bonds payable 5

    Both bonds payable and premium on bonds payable are liability accounts.
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “Any unamortized premium should be reported on the balance sheet of the issuing corporation as ...” in 📙 Business if there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Search for Other Answers