Quartz Corporation sold a $500,000. 7 percent bond issue on January 1, 2003. The bonds pay interest each December 3 1 and mature 10 years from January 1 , 2003. For comparative study and analysis, assume three separate cases. Use straight-line amortization and disregard income tax unless specifically required. Assume three independent selling scenarios: Case A, bonds sold at par; Case B, bonds sold at 98; Case C. bonds sold at 102.

Required: 1. Complete the following schedule as of December 3 1 , 2003, to analyze the differences among the three cases.

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a. Cash received at issue. b. Bond interest expense, pretax for 2003. c. Bonds payable, 7 percent. d. Unamortized discount. e. Unamortized premium. f. Net liability. g. Stated interest rate. Case A Case B Case C (Par) (at 98) (at 102)