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E10-10 Arroyo Company issued $600,000, 10-year, 6% bonds at 103. Instructions Prepare entries for issuance of bonds, balance sheet presentation, and cause of deviations from face value.(a) Prepare the journal entry to record the sale of these bonds on January 1, 2017 (LO 3), AP (b) Suppose the remaining Premium on Bonds Payable was $10,800 on December3 2020. Show the balance sheet presentation on this date. Explain why the bonds sold at a price above the face amount. (c)
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o Januou l 2017 ooy Cash To Bomds Payable Arsoyo Company Bolance Sheet Extract Lon9Term kiabil hes Texm Liabil sen 31 December, &ogo a bPe Add :-Premium ст.fl.3co BUnads Pauya ble $6,legoo the Ceupen vate is Higher than the Nanket So, In current Situation Manket Interest Rates Must be less than 6% rate i5 Higher Rate Bonds will Sel) at Premiom Rate Bonds will sell at Premium

  

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