Fong Corporation sold $2,000,000, 7%, 5-year bonds on January 1, 2017. The issuance of bonds, interest, and bonds were dated January 1, 2017, and pay interest on January 1. Fong Corporation uses straight-line amortization, the straight-line method to amortize bond premium or discount.

and balance sheet presentation. EB Instructions 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 102.

(b) Prepare journal entries as in part

(a) assuming that the bonds sold at 97.

(c) Show the balance sheet presentation for the bond issue at December 31, 2017, using (1) the 102 selling price, and then (2) the 97 selling price.