Sondrini Corporation sold $1,500,000 face value of bonds at 103 on December 31, 2011. These bonds have

Question:

Sondrini sold $1,500,000 of bonds at 103 on December 31, 2011. These bonds have an 8 percent stated rate and mature in four years. Interest is payable on June 30 and December 31 of each year.

Required:
1. Prepare a bond amortization table assuming straight-line amortization.
2. Prepare the journal entry for December 31, 2013.
3. Indicate how these bonds will appear in Sondrini’s at December 31, 2013. Balance Sheet
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