Prepare the journal entries to record the issuance

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Wempe Co. sold $3,000,000, 8%, 10-year bonds on January 1, 2014. The bonds were dated January 1, 2014, and pay interest on January 1. The company uses straight-line amortization on bond premiums and discounts. Financial statements are prepared annually.

Prepare the journal entries to record the issuance of the bonds assuming they sold at: (1) 103 and (2) 98.

Prepare amortization tables for issuance of the bonds sold at 103 for the first three interest payments.

Prepare amortization tables for issuance of the bonds sold at 98 for the first three interest payments.

Prepare the journal entries to record interest expense for 2014 under both of the bond issuances assuming they sold at: (1) 103 and (2) 98.

Show the long-term liabilities balance sheet presentation for issuance of the bonds sold at 103 at December 31, 2014.

Show the long-term liabilities balance sheet presentation for issuance of the bonds sold at 98 at December 31, 2014.

 

Reference no: EM131787762

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