Cornerstone Exercise 9-22 (Algorithmic) Reporting Long-Term Debt on the Balance Sheet

Dennis Corp. has the following bonds:

a. $110,000 in bonds that have $2,000 of unamortized discount associated with them.

b. $110,000 in bonds that have $3,000 of unamortized premium associated with them.

Required:

Prepare the balance sheet presentation for these two bonds.

a. Long-term liabilities:

Bonds payable

Discount on bonds payable
Carrying value

b. Long-term liabilities:

Bonds payable

Premium on bonds payable
Carrying value