Amortization of Premium

Ortega Company issued five-year, 5% bonds with a face value of $50,000 on January 1, 2017. Interest is paid annually on December 31. The market rate of interest of January 1, 2017, is 4% and the proceeds from the bond issuance equal $52,227.

1)Prepare the balance sheet presentation of the bonds on December 31, 2019 (the third year).

Prepare the balance sheet presentation of the bonds on December 31, 2019 (the third year) Ortega Company Balance Sheet (Partial) December 31, 2019 Bonds payable Premium on bonds payable 50,945