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Bonds Payable (straight-line amortization) Circle Inc. issued $20,000 maturity value of bonds payable for $19,337 cash on January 1St, 2008. The bonds had a stated
Bonds Payable (straight-line amortization) Circle Inc. issued $20,000 maturity value of bonds payable for $19,337 cash on January 1St, 2008. The bonds had a stated rate of 14%, but the market rate was 16%. Interest is paid semi-annually and the bonds are due in two years. Circle uses the straight-line method of amortization. Required: 1) Are these bonds issued at a discount or premium? st 2) Journalize Circle's issuance of the bonds on January1 2008 General Journal Debit Credit Date Accounts 3) Journalize Circle's first two interest payments on June 30h 2008 and December 315t 2008. 3) Journalize Circle's first two interest payments on June 30 Learning Objective 1 Unfig 15-12 General Journal DebitCredift Date Accounts Show how the bonds would appear on Circle's December 31 2008 balance sheet. 4)
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