Author Question: If a bond is sold at a premium, the carrying value reported on the balance sheet in subsequent years ... (Read 252 times)

s.tung · **on:** Jul 5, 2018

If a bond is sold at a premium, the carrying value reported on the balance sheet in subsequent years ________.

A) stays the same each year
B) increases each year
C) decreases each year
D) changes every year as the market rate of interest changes

Question 2

Assume the gross amount of an invoice is 200 and a trade discount of 10 is allowed. The amount to be entered in the accounting records would be
a. 20.
b. 220.
c. 200.
d. 180.