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On June 30, 2025, Michael Jones Company issued $3,493,000.00 face value of 14%, 20-year bonds at $4,018,560.00, a yield of 12%. Jones uses the effective-interest
On June 30, 2025, Michael Jones Company issued $3,493,000.00 face value of 14%, 20-year bonds at $4,018,560.00, a yield of 12%. Jones uses the effective-interest method to amortize bond premium or discount. The bonds pay semiannual interest on June 30 and - December 31. Show the proper balance sheet presentation for the liability for bonds payable on the December 31, 2026, balance sheet. (Round answers to 2 decimal places, e.g. 38,548.25.) Jones Company Balance Sheet 1. The issuance of the bonds on June 30, 2025. 2. The payment of interest and the amortization of the premium on December 31, 2025. 3. 4. The payment of interest and the amortization of the premium on June 30, 2026. The payment of interest and the amortization of the premium on December 31, 2026. No. Date Account Titles and Explanation 1. June 30, 2025 Cash Bonds Payable Premium on Bonds Payable 2. December 31, 2025 : Interest Expense 3. June 30, 2026 Premium on Bonds Payable T Cash Debit 4018560 2411136 33964 Interest Expense Premium on Bonds Payable 240909,82 360018 Cast 3. June 30, 2026 Interest Expense 4. December 31, 2026 Premium on Bonds Payable Cash Interest Expense Premium on Bonds Payable Cash 240909.82 3600,18 240693.8) 3816.2
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