Nemo Company authorized and sold $90,000 of 10%, 15-year bonds on April 1, 2003. The bonds pay interest each April 1, and Nemo’s year-end is December 31. 1. Prepare journal entries to record the issuance of Nemo Company’s bonds under each of the following three assumptions: a i Soldiat 7,

b. Sold at face value. Ge SoldiatalO5. 2. Prepare adjusting entries for the bonds on December 31, 2003, under all three assumptions. (Use the straight-line amortization method.) 3. Show how the bond liabilities would appear on the December 31, 2003, balance sheet under each of the three assumptions. 4, Interpretive Question: What condition would cause the bonds to sell at 97? At 105?