Question: On January 1, 2012, Hampton, Inc. issues $3 million of 5-year, 10% bonds with interest payable on July 1 and January 1. Hampton prepares financial

On January 1, 2012, Hampton, Inc. issues $3 million of 5-year, 10% bonds with interest payable on July 1 and January 1. Hampton prepares financial statements on December 31 and amortizes any discount or premium using the straight-line method.
Required
Prepare all journal entries necessary in 2012 assuming the bonds were issued at
(a) 96
(b) 103.

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