On January 1, 2014, Sark Wholesale Ltd. issued $500,000 of 10-year, 6% bonds payable at 99. Interest is payable semi-annually on June 30 and December 31.Semi-annual amortization for this bond is $250.
Required:
1) Record all entries required for this bond during 2014.
2)Show how the bonds would be reported on Sark's December 31,2014 balance sheet.