2.

Dechow, Inc., issued $250,000 of 8%, 15-year bonds at 96 on July 1, 2007. Interest is payable semiannually on December 31 and June30. Through June 30, 2014, Dechow amortized $3,186 of the bond discount. On July 1, 2014, Dechow retired the bonds at 101.

Required:

Prepare journal entries to (i.) record the issue and (ii.) retirement of these bonds. (Assume the June interest expense has already been paid). (10 marks)

(Please don't use hand writting)