I got part of the way there but Im lost on what to do next. :( M10-10 Computing

Question

I got part of the way there but Im lost on what to do next. :(

M10-10 Computing and Reporting a Bond Liability Issued at a Premium [LO 10-3] E-Tech Initiatives Limited plans to issue $710,000, 10-year, 5.50 percent bonds. Interest is payable annually on December 31. All of the bonds will be issued on January 1, 2016. Show how the bonds would be reported on the January 2, 2016, balance sheet if they are issued at 103. E-TECH INITIATIVES LIMITED Balance Sheet (partial) As of January 2, 2016 Long-Term Liabilities $ 710,000 Bonds Payable Discount on Bonds Payable Carrying Value S 710,000

Explanation / Answer

Balance sheet presentation :

Long term liabilities Bonds payable 710000 Add: Premium on bonds payable (710000*3%) 21300 Carrying value 731300

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