Sassys trial balance shows $200,000 face value of bonds with a discount balance of $2,000. The bonds

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Sassy’s trial balance shows $200,000 face value of bonds with a discount balance of $2,000. The bonds mature in 10 years. How will the bonds be presented on the balance sheet?

a. Bonds payable $198,000 (net of $2,000 discount) will be listed as a long-term liability.

b. Bonds payable $200,000 will be listed as a long-term liability. A $2,000 discount on bonds payable will be listed as a contra current liability.

c. Bonds payable $200,000 will be listed as a long-term liability.

d. Bonds payable $200,000 will be listed as a long-term liability. A $2,000 discount on bonds payable will be listed as a current liability.

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Horngrens Financial And Managerial Accounting The Managerial Chapters

ISBN: 9781292412337

7th Global Edition

Authors: Tracie Miller Nobles, Brenda Mattison, Ella Mae Matsumura

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