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 $260,000 of 10-year, 8 percent bonds on July 1, Year 1, at 102. 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. Answer is complete but not entirely correct. SQUARE FOOT GRILL, INCORPORATED Balance Sheet (Partial) As of December 31 Liabilities Year 1 Year 2 Bonds payable Premium on bonds payable Net carrying value of bonds Total liabilities $260,000 $260,000 4,680 4,160 x 264,680 264,160 x $264,680 $264,160