Question

When a customer pays the maturity value of the note, what account is credited?

Answer 1

The Bond Payable account is credited.

Step-by-step explanation:

When a customer pays the maturity value of a note, the Bond Payable account is credited.

The Bond Payable account represents the amount of the bond that the borrower owes to the investor. When the borrower pays back the face value and interest on the bond at maturity, the Bond Payable account is reduced or eliminated.

For example, if a company issued a $10,000 bond with a maturity date in 5 years, when the company repays the $10,000 to the investor at maturity, the Bond Payable account would be credited for $10,000.

Answer 2

The Bond Payable account is credited.

Step-by-step explanation:

When a customer pays the maturity value of a note, the Bond Payable account is credited.

The Bond Payable account represents the amount of the bond that the borrower owes to the investor. When the borrower pays back the face value and interest on the bond at maturity, the Bond Payable account is reduced or eliminated.

For example, if a company issued a $10,000 bond with a maturity date in 5 years, when the company repays the $10,000 to the investor at maturity, the Bond Payable account would be credited for $10,000.

Answer 3

The Bond Payable account is credited.

Step-by-step explanation:

When a customer pays the maturity value of a note, the Bond Payable account is credited.

The Bond Payable account represents the amount of the bond that the borrower owes to the investor. When the borrower pays back the face value and interest on the bond at maturity, the Bond Payable account is reduced or eliminated.

For example, if a company issued a $10,000 bond with a maturity date in 5 years, when the company repays the $10,000 to the investor at maturity, the Bond Payable account would be credited for $10,000.

Answer 4

The Bond Payable account is credited.

Step-by-step explanation:

When a customer pays the maturity value of a note, the Bond Payable account is credited.

The Bond Payable account represents the amount of the bond that the borrower owes to the investor. When the borrower pays back the face value and interest on the bond at maturity, the Bond Payable account is reduced or eliminated.

For example, if a company issued a $10,000 bond with a maturity date in 5 years, when the company repays the $10,000 to the investor at maturity, the Bond Payable account would be credited for $10,000.