Financial Statement Presentation of Bond Accounts

Indicate the proper financial statement classification for each of the following accounts:

$1)$ Discount on Long$-$term Bonds Payable

A$)$Expense in the other income and expense section of income statement. B$)$Addition to Long$-$term Bonds Payable; thus, part of a long term liability in the balance sheet.

C$)$Other income in income statement.

D$)$Long term liability in the balance sheet.

E$)$Deduction from Long$-$term Bonds Payable; thus, a contra long term liability in the balance sheet.

$2)$ Bond Interest Payable

A$)$Current liability in the balance sheet

B$)$Addition to Long$-$term Bonds Payable; thus, part of a long term liability in the balance sheet.

C$)$Other income in income statement.

D$)$Long term liability in the balance sheet.

E$)$Deduction from Long$-$term Bonds Payable; thus, a contra long term liability in the balance sheet.

$3)$ Premium on Long$-$term Bonds Payable

A$)$Expense in the other income and expense section of income statement. B$)$Addition to Long$-$term Bonds Payable; thus, part of a long term liability in the balance sheet.

C$)$Other income in income statement.

D$)$Long term liability in the balance sheet.

E$)$Deduction from Long$-$term Bonds Payable; thus, a contra long term liability in the balance sheet.