Bond Issuance: At Premium. On Interest Date. On issuance ( Debit Credit Premium on Bond Payable: Adjunct liability (attached to B/P). Balance Sheet (1/1/25) : Bond Interest Interest (December 31): Using straight line premium amortization. Not GAAP. Valuation of Bonds On January 1, 2025, Teva Co. issued $500,000 face value of 10%, 5 -year bonds at a yield of 8%. The bonds pay interest annually on December 31. Bonds are issued at : Cash received at time of issue: How much? PVof the principal: PV of the interest payments: Present value (selling price) of the bonds