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 $990,000 $950,000 (9,900) (0,910) 999,400 990,940 $ 359,100 6 $32.910