One June 30,2020, Pronghorn Company issued $4,470,000 face value of 14%, 20 year bonds at $5142560, a yield of 12%. Pronghorn uses the effective interest method to amortize bond premium or discount. The bonds pay semiannual interest on June 30 and December 31 Show the proper balance sheet presentation for the liability for bonds payable on the December 31, 2021, balance sheet. (Roundanswers to O decimal places, e.g. 38,548.)Pronghorn CompanyBalance SheetEA$ DateJune 30,2020December31, 2020June 30,2021December31, 2021Account Titles and ExplanationCashBonds PayablePremium on Bonds PayableInterest ExpensePremium on Bonds PayableCashInterest ExpensePremium on Bonds PayableCashInterest ExpensePremium on Bonds PayableCashDebit5,142,560308554434630829346073080164884Credit4,470,000672,560312900312900312900

The bonds are the financial instruments that are issued to raise money from the market. The bonds…

One June 30,2020, Pronghorn Company issued $4,470,000 face value of 14%, 20 year bonds at $5142560, a yield of 12%. Pronghorn uses the effective interest method to amortize bond premium or discount. The bonds pay semiannual interest on June 30 and December 31

One June 30,2020, Pronghorn Company issued $4,470,000 face value of 14%, 20 year bonds at $5142560, a yield of 12%. Pronghorn uses the effective interest method to amortize bond premium or discount. The bonds pay semiannual interest on June 30 and December 31

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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