Cullumber Company sold $3,120,000, 10%, 10-year bonds on January 1, 2022. The bonds were dated January 1, 2022, and pay interest on January 1. The company uses straight-line amortization on bond premiums and discounts. Financial statements are prepared annually.

(a) Prepare the journal entries to record the issuance of the bonds assuming they sold at: (1) 104 and (2) 96. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)