OBrien, Inc., is authorized to issue $3,600,000 in bonds on June 1. The bonds carry a face

Question:

O’Brien, Inc., is authorized to issue $3,600,000 in bonds on June 1. The bonds carry a face interest rate of 9 percent, which is to be paid on June 1 and December 1.
Prepare journal entries to record the issue of the bonds by O’Brien under the assumptions that
(a) The bonds are issued on September 1 at 100
(b) The bonds are issued on June 1 at 105.