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

Instructions

a. Prepare a tabular summary to record the sale of these bonds on January 1, 2022.

b. Suppose the remaining Premium on Bonds Payable was $10,800 on December 31, 2025. Show the balance sheet presentation on this date.

c. Explain why the bonds sold at a price above the face amount.

Record issuance of bonds, provide balance sheet presentation, and explain cause of deviations from face value.