When bonds are sold for more than the face amount, this means that the:
A company issued $300,000, 6%, nine year bonds on January 1. The market rate of interest was 5%. Interest on these bonds is payable annually on December 31.
A Corporation issued $450,000 face value, 4% 10-year bonds on January 1, Year 1 for $383,063. This price resulted in an effective interest rate of 6% on the bonds. Interest is payable semi-annually on June 30 and December 31.
On January 1, a company retired $800,000 face value bonds at a call price of 103. The bonds were originally issued for $848,000. On the retirement date the bonds had an unamortized premium of $28,352. The entry to retire the debt would include a