EXERCISE 10-18 ISSUANCE AND REACQUISITION OF BONDS On Januan," 1. 2001, the Housen Company issued 10-year bonds of S500.000 at 102.

Interest is payable on Januan- 1 and July 1 at 10%. On April 1. 2002. the Housen Company reacquires and retires 50 of its own 51,000 bonds at 98 plus accrued interest.

The fiscal period for the Hotisen Company is the calendar }-ear.

Prepare entries to record

(a) the issuance of the bonds,

(b) the interest payments and adjustments relating to the debt in 2001,

(c) the reacquisition and retirement of bonds in 2002, and

(d) the interest payments and adjustments relating to the debt in 2002. Assume the premium or discount is amortized on a straight-line basis. (Round to the nearest dollar.)