A Discount on Bonds Payable account is a contra account to Bonds Payable. will cause interest expense to be less than cash interest payable. is increased over the life of the bond until it equals the bond's face value. is an adjunct account to Bonds Payable.

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A Discount on Bonds Payable account is a contra account to Bonds Payable

Accounting Mar 19, 2021

A Discount on Bonds Payable account

1. is a contra account to Bonds Payable.
2. will cause interest expense to be less than cash interest payable.
3. is increased over the life of the bond until it equals the bond's face value.

1. is an adjunct account to Bonds Payable.

Expert Solution

Answer:

a . is a contra account to Bonds Payable .

Step-by-Step explanation

Bond discount account is an account of contra liability that has a debit balance. This account will always be recorded in the balance sheet along with the account of bonds payable.

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