1210 similar to 96 SolutionBonds issue price 450000104100

Solution

Bonds issue price = 450000*104/100 = 468000

Bond face value = 450000

Premium on bonds payable = 468000-450000 = 18000

Semiannual amortization of premium = 18000/10 = 1800

Carrying value of bonds payable on retirement date = Face value+Unamortized premium

= 450000+(18000-3600)

Carrying value of bonds payable on retirement date = $464400