Wempe Co. sold $3,000,000, 8%, 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.
