Questions -
1) On January 1, 2015, Bailey Company issued its 8% bonds in the face amount of $3,000,000, which mature on January 1, 2025. The bonds were issued for $3,442,000 to yield 6%. Bailey uses the effective-interest method of amortizing bond premium. Interest is payable annually on December 31. Compute the balance of the adjusted unamortized bond premium at December 31, 2016.
2) On July 1, 2016, Pillar Company issued 8% bonds in the face amount of $5,000,000, which mature on July 1, 2022. The bonds were issued for $4,365,000 to yield 11%. Pillar uses the effective-interest method of amortizing bond discount. Interest is payable annually on June 30. Compute the balance of the unamortized bond discount at June 30, 2019.