Question - Amortization of Discount
Stacy Company issued five-year, 10% bonds with a face value of $10,000 on January 1, 2017. Interest is paid annually on December 31.
The market rate of interest on this date is 12%, and Stacy Company receives proceeds of $9,279 on the bond issuance.
How does this entry affect the accounting equation?
Determine the balance sheet presentation of the bonds for December 31, 2019.