- Business
- Accounting
- saberhagen company sold 3500000 8 10year bonds on january 1...
Question: saberhagen company sold 3500000 8 10year bonds on january 1...
Question details
Saberhagen Company sold $3,500,000, 8%, 10-year bonds on
January 1, 2017. The bonds were dated January 1, 2017 and pay
interest annually on January 1. Saberhagen Company uses the
straight-line method to amortize bond premium or discount.
Instructions (a) Prepare all the necessary journal entries to
record the issuance of the bonds and bond interest expense for
2017, assuming that the bonds sold at 104. Amortization $14,000 (b)
Prepare journal entries as in part (a) assuming that the bonds sold
at 98. Amortization $7,000 (c) Show balance sheet presentation for
the bonds at December 31, 2017, for both the requirements in (a)
and (b). Premium on bonds payable $126,000 Discount on bonds
payable $63,000
******Wasn’t sure how much info is needed, but I only need to
solve the problems in the picture!! [ top and bottom]

Solution by an expert tutor
