Jaggar Company sold $3,000,000, 8%, 10-year bonds on July 1, 2014. The bonds bond premium and discount. were dated July 1, 2014, and pay interest July 1 and January 1. Jaggar Company uses the

(LO: 5), 1:1) straight-line method to amortize bond premium or discount. Assume no interest is ac-

— crued on June 30.

(a) Amortization $4,500

(b) Amortization $6,000 Instructions

(c) Premium on bonds payable

(a) Prepare all the necessary journal entries to record the issuance of the bonds and bond

$85,500 interest expense for 2014, assuming that the bonds sold at 103.

Discount on bonds payable —

(b) Prepare journal entries as in part

(a) assuming that the bonds sold at 96.

$114,000

(c) Show balance sheet presentation for each bond issue at December 31, 2014.