DEM-REP Company issued 10% bonds, dated January 1, with a fa…
DEM-REP Company issued 10% bonds, dated January 1, with a face amount of $850,000 on January 1, 2024. The bonds sold for $752,501 and mature in 2034 (10 years Interest is paid semiannually on June 30 and December 31. DEM-REP uses the straight-line method to amortize the discount. DEM-REP elected the option to report these bonds at their fair value. On December 31, 2024, the balance of the unamortized discount on bonds payable was $92,624 and the fair value of the bonds was $810,000. Changes in fair value are attributable changes in the general (risk-free) rate of interest. DEM-REP’s financial statements will include: