A company issued $100 000 of 20 year bonds at t=0 (thus, they are due at t=20). At the end of each year for the first 10 years (i.e. up to t=10), the bonds pay 12% coupons annually. Then, for the final 10 years (t=11 to t=20), the bond pays 6% coupons. At t=18 (the end of the 18th year, after paying the coupon), the company redeems the bonds at a quoted price of 88. The bond is priced to yield 10% per year.

Prepare the journal entries to record: (i) the issue of these bonds at t=0, and (ii) the retirement of these bonds at t=18, assuming the interest has already been paid.