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The board of directors of Calmont, LLC, authorized the issuance of $600,000 face value, 20-year, 5 percent bonds, dated March 1, 2019, and maturing on March 1, 2039. Interest is payable semiannually on September 1 and March 1.

DATE		TRANSACTIONS FOR 2019
Jun.	1	Issued bonds with a face value of $450,000 at 97.63 plus accrued interest from March 1. (When bonds are issued between interest payment dates, the accrued interest is paid to the corporation by the purchaser. Credit Bond Interest Expense.)
Sept.	1	Paid the semiannual bond interest and amortized the discount for three months. (Make two entries. Use the straight-line method to compute the amortization.)
Dec.	31	Recorded an adjusting entry to accrue the interest and to amortize the discount. (Make one entry.)
	31	Closed the Bond Interest Expense account to the Income Summary account.

DATE	TRANSACTIONS FOR 2020
Jan. 1	Reversed the adjusting entry made on December 31, 2019.
Mar. 1	Paid the semiannual bond interest and amortized the discount on the outstanding bonds.

Required:

Record the preceding transactions in general journal form.

Prepare the Long-Term Liabilities section of the corporation's balance sheet on December 31, 2019.

Analyze: What is the balance of the Discount on Bonds Payable account on December 31, 2019?

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