Disclosure of Serial Bonds Payable
Response to the following problem:
On May 1, 2010, the Ramden Company issues 13% serial bonds with a face value of $2 million. The bond contract calls for retirement of the bonds in periodic installments of $200,000, starting on May 1, 2011 and continuing on each May 1 thereafter until all bonds are retired.
Required
How would the preceding information appear in the Ramden Company's balance sheets on December 31, 2010 and 2011?