Welch Corporation\'s trial balance shows $350,000 face value of bonds with a dis

Question

Welch Corporation's trial balance shows $350,000 face value of bonds with a discount balance of $2,600. The bonds mature in 10 years. How will the bonds be presented on the balance sheet? 0 A. Bonds payable $350,000 will be listed as a long term liability A $2.600 discount on bonds payable will be listed as a contra O B. Bonds payable $350,000 will be listed as a long-term liability. A $2,600 discount on bonds payable will be listed as a current O C. Bonds payable $347,400 (net of $2,600 discount) will be listed as a long-term liability current liability liability O D. Bonds payable $350,000 will be listed as a long-term liability

Explanation / Answer

Bonds payable - Long term liability.

Discount on bonds payable - Contra current liability. Discount on bonds payable is amortized over time.

The answer is - Bonds payable $350,000 will be listed as a long term liability. A $2,600 discount on bonds payable will be listed as a contra current liability.

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