Wempe Co. sold $3,475,000,9%,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.

6/25/2016 Problem 109A Print by: FALICIA NEWSOME ACC/291 50155874 / Assignment: Week 3 Assignment *Problem 109A Wempe Co. sold $3,475,000, 9%, 10year bonds on January 1, 2014. The bonds were dated January 1, 2014, and pay interest on January 1. The company uses straightline 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) 102 and (2) 96. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) No. Date Account Titles and Explanation Debit Credit 1. 1/1/14 2. 1/1/14 Prepare amortization tables for issuance of the bonds sold at 102 for the first three interest payments. Annual Interest Periods Interest to Be Paid Interest Expense to Be Recorded $ Issue date Premium Amortization $ Unamortized Premium $ Bond Carrying Value $ $ 1 2 3 Prepare amortization tables for issuance of the bonds sold at 96 for the first three interest payments. Annual Interest Periods Interest to Be Paid Interest Expense to Be Recorded $ Issue date Premium Amortization $ Unamortized Premium $ Bond Carrying Value $ $ 1 2 3 Prepare the journal entries to record interest expense for 2014 under both of the bond issuances assuming they sold at: (1) 102 and (2) 96. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) No. Date Account Titles and Explanation Debit Credit 1. 12/31/14 2. 12/31/14 Show the longterm liabilities balance sheet presentation for issuance of the bonds sold at 102 at December 31, 2014. WEMPE Co. Balance Sheet (Partial) December 31, 2014 $ : $ Show the longterm liabilities balance sheet presentation for issuance of the bonds sold at 96 at December 31, 2014. http://edugen.wiley.com/edugen/shared/assignment/test/qprint.uni 1/2 6/25/2016 Problem 109A WEMPE Co. Balance Sheet (Partial) December 31, 2014 $ : $ Question Attempts: 0 of 3 used Copyright 20002016 by John Wiley & Sons, Inc. or related companies. All rights reserved. http://edugen.wiley.com/edugen/shared/assignment/test/qprint.uni 2/2