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 )
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 )
