Question

On January 1, 2015, Jon Sports has a bond payable of $200,000. During 2015, it pays off $20,000 of the outstanding bond principal and issues a new $70,000 bond. There are no other transactions related to the bond payable account. What is Jon Sports' December 31, 2015, bond payable balance?

Answer 1

250,000 bonds payable at December 31th, 2015

Step-by-step explanation:

Beginning Bonds

-Principal Payment made (bonds called)

+bonds issued

Ending Bonds

200,000

-20,000 principal payment

70,000 new bonds issued

250,000 bonds payable at December 31th, 2015