On July 1,2010,Garden Works,Inc.issued $300,000 of ten-year,7% bonds for $303,000.The bonds were dated July 1,2010,and semi-annual interest will be paid each December 31 and June 30.Garden Works Inc.uses straight-line amortization.What is the bond liability to be reported on the December 31,2011 balance sheet?

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The straight-line premium amortization ($150) = Premium on bonds payable ($303,000 - $300,000) F1F1F1S1F1F1F10 20 semi-annual interest payments.December 31, 2011 bond liability ($302,550) = Initial issue price ($303,000) - Premium on bond payable amortization ($150 F1F1F1S1F1F1F10 3).