Asked by Christina Nestor on May 22, 2024
Verified
The carrying value of bonds is calculated by adding the balance of the Discount on Bonds Payable account to the balance in the Bonds Payable account.
Carrying Value
The book value of assets and liabilities on a company’s balance sheet, often different from the market value.
Discount On Bonds
The difference between the face value of a bond and its selling price, when the bond is sold for less than its face value.
- Identify the implications of issuing bonds at a premium or discount on the carrying value of bonds.
Verified Answer
AA
Arslan ArshadMay 28, 2024
Final Answer :
False
Explanation :
The carrying value of bonds is calculated by subtracting the balance of the Discount on Bonds Payable account from the balance in the Bonds Payable account.
Learning Objectives
- Identify the implications of issuing bonds at a premium or discount on the carrying value of bonds.
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