On January 1, 2019, the Bonds Payable account has a balance of $730,000. On December 31, 2019, the Bonds Payable account has a balance of $820,000. During 2019, one bond of $9,000 was retired. No discounts or premiums were amortized in 2019. What amount of new bonds were issued in 2019?

Question

Terrell Moore

Business

2 December, 05:38

On January 1, 2019, the Bonds Payable account has a balance of $730,000. On December 31, 2019, the Bonds Payable account has a balance of $820,000. During 2019, one bond of $9,000 was retired. No discounts or premiums were amortized in 2019. What amount of new bonds were issued in 2019?

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Answers (1)

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Mr. Clean · Answer 1

Answer: $99,000

Explanation:

Given the opening Balance of the Bond Payable account as well as the Closing Balance and the bonds that were retired for the year, we can deduce the amount of new bonds issued using the following formula,

Opening Balance + Bonds Issued - Retired bonds = Closing Balance

Making Bonds Issued the subject we have,

Bonds Issued = Closing Balance - Opening Balance + Retired bonds

Bonds issued is therefore,

= 820,000 - 730,000 + 9,000

= $99,000

$99,000 was the Amount of new bonds issued in 2019.