On January 1, 2003, Delaware Corporation sold and issued $100,000, five-year, 10 percent bonds. The bond interest is payable annually each December 3 1 . Assume three separate and independent selling scenarios: Case A, at par; Case B, at 90; and Case C. at 110.

Required: 1. Complete a schedule similar to the following for each separate case assuming straight-line amortization of discount and premium. Disregard income tax. Give all dollar amounts in thousands.

Jacobs Company issued bonds with the following provisions:
Maturity value: $1,000,000 Interest: 8 percent per annum payable semiannually each June 30 and December 31.
Terms: Bonds dated January 1. 2003. due 10 years from that date.

The annual accounting period ends December 31. The bonds were sold on January 1. 2003, at 10 percent market rate.

Required: 1. Compute the issue (sale) price of the bonds (show computations). 2. Give the journal entry to record the issuance of the bonds. 3. Give the journal entries at the following dates (use straight-line amortization): June 30. 2003: December 31. 2003; and June 30, 2004. 4. How much interest expense would be reported on the income statement for 2003? Show how the liability related to the bonds should be reported on the December 31. 2003. balance sheet.

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Case A: sold at par (100) Interest expense on income statement Net liability on balance sheet Case B: sold at a discount (90) Interest expense on income statement Net liability on balance sheet Case C: sold at a premium (110) Interest expense on income statement Net liability on balance sheet At End At End At End At End of 2003 of 2004 of 2005 of 2006 $ $ S S