E14-16 (Entries and Questions for Bond Transactions) On June 30, 2014, Mosca Limited issued $4 million of 20- year, 13% bonds for $4,300,920, which provides a yield of 12%. The company uses the effective interest method to amortize any bond premium or discount. The bonds pay semi-annual interest on June 30 and December 31. Instructions

(b) Show the proper statement of financial position presentation for the liability for bonds payable on the December 31, 2014 statement of financial position.