Arroyo Company issued ($ 600,000,10)-year, (6 %) bonds at 103 . section*{Instructions} (a) Prepare the journal entry

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

\section*{Instructions}

(a) Prepare the journal entry to record the sale of these bonds on January 1, 2017.

(b) Suppose the remaining Premium on Bonds Payable was $\$ 10,800$ on December 31, 2020. Show the balance sheet presentation on this date.

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

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