Question

In each separate situation, show how bonds payable is reported in the long-term liabilities section of the December 31 balance sheet?

Answer 1

Bonds payable is reported as a separate line item in the long-term liabilities section of the balance sheet, representing the amount of long-term debt owed to bondholders.

Step-by-step explanation:

In the long-term liabilities section of the December 31 balance sheet, bonds payable is reported as a separate line item. It represents the amount of long-term debt that the company owes to bondholders. Bonds payable are usually reported at their face value, which is the amount that will be paid back to the bondholders at maturity, along with any interest. Here is an example of how bonds payable would be reported on a balance sheet:

Long-term Liabilities:

• Bonds Payable: $XXX