6. On December 31, 2007, Bolden, Inc., sold at 102 a $500,000 issue of 10%

Bonds that mature in 20 years. Bond interest is payable on June 30 and

December 31. The firm uses the straight-line method of amortization.

REQUIRED:

1. Present all entries pertaining to the bonds for 2007 and 2008.

2. Prepare the entry to record the retirement of $200,000 of the bonds

At 105 on December 31, 2013 ( immediately after the interest payment

On that date).