The "discount on bonds payable" account is when a bound sells at discount. The "premium on bond payable" is __ when a bond sells a premium.

The correct answer is B. Debited, credited. See the full explanation below for the reasoning.

Question

The “discount on bonds payable” account is __________when a bound sells at discount. The “premium on bond payable” is ____________ when a bond sells a premium.

Options

ACredited, debited
BDebited, credited
CAccrued, debited
DDeferred, debit

How the community answered

(54 responses)

A
17% (9)
B
74% (40)
C
4% (2)
D
6% (3)

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