The premium on bonds payable account is a n
Webbpremium on bonds payable definition A liability account with a credit balance associated with bonds payable that were issued at more than the face value or maturity value of the … Webb31 dec. 2024 · Accounts payable 1,900, Bonds payable 3,400, Premium on bonds payable 200, Defered tax liability 400, Dividends payable 500, Income tax payable 900, Note payable, due January 31, 2024 600, The deferred tax liability is based on temporary differences that will reverse in 2024.
The premium on bonds payable account is a n
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WebbThe Premium on Bonds Payable account is a (n): Adjunct liability account. Equity account. Revenue account. Contra asset account. Contra revenue account. This problem has … WebbThe premium on bonds payable account is shown on the statement of financial position as a.a contra asset. b.a subtraction from a long-term liability. c.an addition to a long-term …
Webb(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. Each $1,000 bond is convertible into 20 shares of preferred stock of par value of $50 per share. All bonds are converted into preferred stock. Instructions Webb21 mars 2024 · Premium bonds typically pay a higher interest rate than the overall market. Premium bonds are usually issued by well-run companies with solid credit ratings.
WebbLike the Premium on Bonds Payable account, the discount on bonds payable account is a contra liability account and is “married” to the Bonds Payable account on the balance sheet. The Discount will disappear over time as it is amortized, but it will increase the interest expense, which we will see in subsequent journal entries. Webb20 juli 2024 · The Premium on Bonds Payable account is "the amount by which bonds are issued in excess of their face value." What are bonds payable? When a firm issues bonds to earn cash, bonds payable are recorded. The corporation is a borrower since it is a bond issuer. As a result, just issuing the bond creates an obligation.
Webb26 dec. 2024 · Premium on bonds payable is the excess amount by which bonds are issued over their face value. This is classified as a liability on the books of the issuer, …
WebbAnalyzing, journalizing, and reporting bond transactions. Johnny’s Hamburgers issued 8%, 10-year bonds payable at 85 on December 31, 2024. At December 31, 2024, Johnny reported the bonds payable as follows: Long-term Liabilities: Bonds Payable $ 300,000. Less: Discount on Bonds Payable (36,000) $ 264,000 ooey gooey popcorn recipeiowa cell phone rulesWebbOnce the first journal entry is prepared for the premium on bonds payable it can just be repeated each period until maturity. The simple formula to be used is: Bond Premium / … ooey gooey lemon blueberry cakeWebbThe Premium on Bonds Payable account is a (n): Multiple Choice Revenue account. Adjunct liability account. Contra revenue account. O Contra asset account. Equity account. This problem has been solved! You'll get a detailed solution from a subject matter expert that helps you learn core concepts. See Answer iowa census 1950Webb100% (2 ratings) The Discount on bonds payable account is A Contra Liability accoumt A contra liabilit … View the full answer Transcribed image text: 20. The Discount on Bonds Payable account is: A) A liability B) A contra liability. C) An expense. D) A contra expense. E) A contra equity. Previous question Next question ooey gooey popcorn ballsWebbBonds that require payment of the full principle amount of the bond at the end of the loan term are referred to as 6% stated interest rate and 4% market interest rate Premium - … iowa cell phone drivingWebbQuestion: The premium on bonds payable account is a (n) 1. Revenue account 2. Adjunct liability account 3. Contra revenue account 4. Contra asset account . Equity account. The … ooey gooey science