• 3-6 Using the straight-line method show how bonds issued at a discount affect financial statements
• 3-7 Using the straight-line method show how bonds issued at a premium affect financial statements

Required

For each of the following situations, calculate the amount of bond discount or premium, if any. (Do not round intermediate calculations.)

a.	Gray Co. issued $67,000 of 6 percent bonds at 103 1/2
b.	Bush, Inc. issued $85,000 of 10-year, 6 percent bonds at 96 1/2.
c.	Oak, Inc. issued $198,000 of 20-year, 6 percent bonds at 101.
d.	Willow Co. issued $107,000 of 15-year, 7 percent bonds at 94.