On the balance sheet the account Premium on Bonds Payable is

On the balance sheet, the account Premium on Bonds Payable is:

Select one:

A. Added to Bond Interest Expense

B. Deducted from Bond Interest Expense

C. Added to Bonds Payable

D. Deducted from Bonds Payable

Solution

Answer is C. The account premium on Bonds payable is added to the bonds payable in the balance sheet.