COMPLETING AN AMORTIZATION TABLE (STRAIGHT LINE)
Sondrini Corporation sold $200,000 face value of bonds at 102 on December 31, 2008. These bonds have a 6 percent stated rate and mature in four years. Interest is payable on June 30 and December 31 of each year.
Required:
1. Prepare a bond amortization table assuming straight-line amortization.
2. Provide the journal entry for December 31, 2010.
3. Indicate how these bonds will appear in Sondrini's balance sheet at December 31, 2010.