QUESTION #4 Instructions: (A) Prepare all the necessary journal entries to record the issuance of the bonds and bond interest expense for 2017, assuming that the bonds sold at 104. (B) Prepare journal entries as in part (a) assuming that the bonds sold at 98. (C) Show the statement of financial position presentation for the bonds at December 31, 2017, for both the requirements in (a) and (b).
COMPANY INFO: Saberhagen Ltd. sold 3,500,000, 8%, 10-year bonds on January 1, 2017. The bonds were dated January 1, 2017, and pay interest annually on January 1. Saberhagen Company uses the straight-line method to amortize bond premium or discount.
GENERAL JOURNAL
(a) 2017
Jan	Account Title	Debit	Credit
1
(a) 2017
Dec	Account Title	Debit	Credit
31
(b) 2017
Jan	Account Title	Debit	Credit
1
(b) 2017
Dec	Account Title	Debit	Credit
31
(c) PREMIUM
Show your computations: SABERHAGEN LTD Partial Statement of Financial Position December 31, 2017 Non-current Liabilities Bonds payable, due 2027 .. Current Liabilities Interest Payable ...
(c) DISCOUNT
Show your computations: SABERHAGEN LTD Partial Statement of Financial Position December 31, 2017 Non-current Liabilities Bonds payable, due 2027 .. Current Liabilities Interest Payable ...