The long-term liabilities section of the balance sheet of Trend Electronics appeared as follows: 1. Assuming interest

Question:

The long-term liabilities section of the of Trend Electronics appeared as follows:

2015 2014 Long-Term Liabilities: Bonds payable, 3%, due December 31, 2024 Plus unamortized premium $ 100,000 $ 100.000 3

1. Assuming interest is paid annually, what is the annual interest payment?
2. Will the interest expense be greater or lesser than the annual interest payment?
3. Journalize the 2015 interest payment and premium amortization.

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...