Canyon Company issued $600,000, 10-year, 6% bonds at 103.
(a) Prepare the journal entry to record the sale of these bonds on January 1, 2014.
(b) Suppose the remaining Premium on Bonds Payable was $10,800 on December 31, 2017. Show the balance sheet presentation on this date.
(c) Explain why the bonds sold at a price above the face amount.