how-does-the-premium-on-bonds-payable-affect-the-carrying-value-of-bonds-on-the-

Question

How does the premium on bonds payable affect the carrying value of bonds on the balance sheet?

Accepted Answer

It increases the carrying value of the bonds above their face value

Answer

It has no effect on the carrying value of the bonds

Answer

It decreases the carrying value of the bonds below their face value

Answer

It is recorded as an expense on the income statement