Question

Which items from a bond amortization table are reflected on a company’s Balance Sheet?

a) Cash paid and Premium/Discount amortization only

b) None of the above.

c) Interest Expense only

d) Interest expense, Cash Paid and Premium/Discount amortization.

e) Interest Expense and Cash paid only

Answer 1

Correct answer-------------b) None of the above.

.

Cash paid in not shown on either balance sheet or Income statement. Interest expense is shown on income statement only.

Balance sheet only shows Bond carrying value .