Bonds

Issuing Bonds at Discount
To record issuance of bonds on January 1
Cash 831.766
Discount on Bonds Payable 68.234
Bonds payable 900.000
To record accrued interest expense and accrued amortization at year-end
(December 31)
Bond interest expense 85.647
Discount on Bonds Payable 13.647
Interest Payable 72.000
Balance sheet presentation:
Long-term liabilities
Bonds Payable € € 900 900.000 000
Less: Discount on Bonds Payable 68.234 112.159 € 831.766 € 787.841
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