Canyon Company issued $600,000, 10-year, 6% bonds at 103. Instructions (a) Prepare the journal entry to record

Question:

Canyon Company issued $600,000, 10-year, 6% bonds at 103.

Instructions
(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 presentation on this date.
(c) Explain why the bonds sold at a price above the face amount.

Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...