Question: Dakota Company issued $100,000 of 10-year bonds at a stated interest rate of 10% on January 1, 2013.
Calculate the bonds payable amount, premium or discount amount, and the bonds payable - net amount, for each selling price that will be entered on a balance sheet prepared as of the issue date of January 1, 2013. Please be sure to assume the following and show your calculations:
Part a. Bonds are sold at 100.
Part b. Bonds are sold at 105.
Part c. Bonds are sold at 95.
Sold @ 100 105 95
Bonds Payable
Premium/(Discount)
Bonds Payable, Net