Accountancy Forum
  • Accountancy
  • Forum Home
  • Members
  • Team
  • Help
  • Search
  • Register
  • Login
  • Home
  • Members
  • Help
  • Search
Accountancy Forum The Profession Accounting and Audit v
« Previous 1 … 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 … 28 Next »
Bond Payable Account

 
  • 0 Vote(s) - 0 Average
Bond Payable Account
snyk8122
Offline

Junior Member

Posts: 4
Threads: 3
Joined: Mar 2010
Reputation: 0
#1
03-28-2010, 03:24 AM
Help! I am stuck with regards to the following.

On Jan 1, 2005, X Company has a bond payable of $200,000. During 2005, 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.

How would you recommend I find X company's December 31, 2005 bond payable balance? I'm guessing it's either a debit balance of $250,000, or of $150,000, or a credit balance of $150,000 or $250,000 but I'm not sure how to figure out which is correct.

Thank you for your help )
Qureshi Muhammad Zeeshan
Offline

Junior Member

Posts: 26
Threads: 3
Joined: Mar 2010
Reputation: 0
#2
03-28-2010, 05:42 AM
just make a T account of this and u will get the Answer of this.
its so simple
Ajnabi
Offline

Member

Posts: 71
Threads: 1
Joined: Feb 2010
Reputation: 0
#3
03-29-2010, 04:55 PM
<blockquote id="quote"><font size="1" face="Verdana, Arial, Helvetica, san" id="quote">quote<hr height="1" noshade id="quote"><i>Originally posted by snyk8122</i>
<br />Help! I am stuck with regards to the following.

On Jan 1, 2005, X Company has a bond payable of $200,000. During 2005, 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.

How would you recommend I find X company's December 31, 2005 bond payable balance? I'm guessing it's either a debit balance of $250,000, or of $150,000, or a credit balance of $150,000 or $250,000 but I'm not sure how to figure out which is correct.

Thank you for your help )
<hr height="1" noshade id="quote"></font id="quote"></blockquote id="quote">

Bonds Payable is a liablity account by nature, so any positive balance will always be shown on credit side, and decrease has to be shown on debit side. Based on these facts;

Credit Balance in Bonds payable was initially.------------------------$200,000
Redemptions of Bonds will be debited to bonds payable account---------$20,000
New Issuance will be credited to account -----------------------------$70,000

Bonds payable account should indicate Credit balance-------------------$250,000 at the end.

Ajnabi
« Next Oldest | Next Newest »

Users browsing this thread: 1 Guest(s)



  • View a Printable Version
  • Subscribe to this thread
Forum Jump:

© 2002-2024 Accountancy. Copyrights of all content on this web site are owned by Accountancy except where indicated in source or copyright statements. Accountancy must be contacted for permission to copy or redistribute any material published on this website.

Linear Mode
Threaded Mode