Required information Exercise 10-15A (Algo) Straight-line amortization of a bond premium LO 10-5 [The following information applies to the questions displayed below.] The Square Foot Grill, Incorporated issued $330,000 of 10-year, 6 percent bonds on July 1, Year 1, at 103. Interest is payable in cash semiannually on June 30 and December 31. The straight-line method is used for amortization. Exercise 10-15A (Algo) Part b b. Prepare the liabilities section of the balance sheet at the end of Year 1 and Year 2. SQUARE FOOT GRILL, INCORPORATED Balance Sheet (Partial) As of December 31 Year 1 Year 2 Liabilities Bonds payable Premium on bonds payable Net carrying value of bonds Total liabilities $ 330,000 $ 330,000 (9,900) (8,910) 339,100 338,910 $ 339,100 $ 338,910