Problem 10-9A Wempe Co. sold $3,302,000, 9%, 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) 101 and (2) 97. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)
| No. |
Date |
Account Titles and Explanation |
Debit |
Credit |
| 1. |
1/1/14 |
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| 2. |
1/1/14 |
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Prepare amortization tables for issuance of the bonds sold at 101 for the first three interest payments.
Annual
Interest
Periods |
Interest to
Be Paid |
Interest Expense
to Be Recorded |
Premium
Amortization |
Unamortized
Premium |
Bond
Carrying Value |
| Issue date |
$ |
$ |
$ |
$ |
$ |
| 1 |
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| 2 |
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| 3 |
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Prepare amortization tables for issuance of the bonds sold at 97 for the first three interest payments.
Annual
Interest
Periods |
Interest to
Be Paid |
Interest Expense
to Be Recorded |
Premium
Amortization |
Unamortized
Premium |
Bond
Carrying Value |
| Issue date |
$ |
$ |
$ |
$ |
$ |
| 1 |
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| 2 |
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| 3 |
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Prepare the journal entries to record interest expense for 2014 under both of the bond issuances assuming they sold at: (1) 101 and (2) 97. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)