Wentworth Co. sold $3,000,000, 7%, 8-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.
(a) Prepare the journal entries to record the issuance of the bonds assuming they sold at:
(b) Prepare amortization tables for both assumed sales for the first three interest payments.
(c) Prepare the journal entries to record interest expense for 2014 under both assumed sales.
(d) Show the balance sheet presentation for both assumed sales at December 31, 2014.