Wempe Co. sold $3,477,000, 8%, 10-year bonds on January 1, 2014. The bonds were

Question

Wempe Co. sold $3,477,000, 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.

please answer the blank part.

Prepare the journal entries to record the issuance of the bonds assuming they sold at: (1) 103 and (2) 95. (Credit account titles are automatically indented when amount is entered. Do not indent manually) No. Date Account Titles and Explanation Debit Credit SHOW LIST OF ACCOUNTS LINK TO TEXT Prepare amortization tables for issuance of the bonds sold at 103 for the first three interest payments. Annua Interest Periods Interest to Be Paid Interest Expense to Be Recorded Premium Amortization Unamortized Premiumm Bond Carrying Value Issue date 2 Prepare amortization tables for issuance of the bonds sold at 95 for the first three interest payments Annua Interest Periods Interest to Be Paid Interest Expense to Be Recorded Premium Amortization Unamortized Premiumm Bond Carrying Value Issue date 2 SHOW LIST OF ACCOUNTS LINK TO TEXT

Explanation / Answer

Journal entries to record the issuance of the bonds:

Amortization table: 103

Amortization table : 95

Journal entries to record interest expense:

No. Date Account Titles Debit Credit $ $ 1. 1/1/14 Cash 3,581,310 Bonds payable 3,477,000 Premium on bonds payable 104,310 2. 1/1/14 Cash 3,303,150 Discount on bonds payable 173,850 Bonds payable 3,477,000

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