Question - Wempe Co. sold $3,378,000, 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) 103 and (2) 98.
Prepare amortization tables for issuance of the bonds sold at 103 for the first three interest payments.