=+PR 14-6B Bond premium, entries for bonds payable transactions, interest method of amortizing bond premium

✔ 3. $2,331,456 Special Activities General Electric Capital, a division of General Electric, uses long-term debt extensively.

In a recent year, GE Capital issued $11 billion in long-term debt to investors, then within days filed legal documents to prepare for another $50 billion long-term debt issue. As a result of the $50 billion filing, the price of the initial $11 billion offering declined (due to higher risk of more debt).