Basic Bonds and Bond retirement

Fitch Company has outstanding $3,500,000 of 7% bonds at October 31, 2018. These bonds were initially issued on May 1, 2017 at a price of 101.The bonds pay interest semiannually each April 30 and October and mature in 20 years. The bonds are to be amortized using the effective interest method.

*This is all of the information that is given.

Required

Complete the following amortization table for Fitch

Date	Cash	Interest	Amortization	Carrying Value
1-May-17
31-Oct-17
30-Apr-18
31-Oct-18

Assume that Fitch has an opportunity to refinance half of the debt. On April 30, 2018 after interest has been paid, Fitch is able to retire 50% of the bonds at 1.02. Record the retirement including the payment of interest on April 30, 2018 and prepare the entry to record the payment of interest on October 31, 2018. Assume that the accrued interest adjustment made on December 31,2017 was reversed.

Entry to record retirement

Entry to record the payment on interest on 10/31/2018

**SHOW ALL CALCULATIONS AND WORK**