On December 31, 2023, a company issued 16%, 10-year bonds with a par value of $100,000. Interest is paid on June 30 and December 31. The bonds are sold at an issue price of $110,592 to yield a 14% annual market rate.

11. Are these bonds issued at a discount or a premium? Explain why.

12. Using the effective interest method of allocating bond interest expense, the issuer records the second interest payment (on December 31, 2024) with a debit to Premium on Bonds Payable in the amount of (a) $7,470; (b) $7,741; (c) $259; (d) $530; or (e) $277.

13. How are the bonds reported in the non-current liability section of the issuers balance sheet as of December 31, 2024?