Unformatted text preview: premium on bonds payable for $1,246. Premium on bonds payable is a contra account to bonds payable that increases its value and is added to bonds payable in the long-term liability section of the balance sheet . General Journal Date Account Title and Description Ref. Debit Credit 20X1 July 1 Cash 11,246 Bonds Payable 10,000 Premium on Bonds Payable 1,246 Issue bonds at a premium...
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- Spring '08
- Interest, $10,000, Bonds Payable, $1,246, $10,000 ten