Question

TRUE OR FALSE The carrying value of bonds is calculated by adding the balance of the Discount on Bonds Payable account to the balance in the Bonds Payable account. The loss on bond redemption is the difference between the cash paid and the carrying value of the bonds.

Answer 1

Answer: True.

Step-by-step explanation:

The carrying value of bonds is calculated by adding the balance of the Discount on Bonds Payable account to the balance in the Bonds Payable account. The loss on bond redemption is the difference between the cash paid and the carrying value of the bonds.