Bond Retirement Problem #1

On January 1, 2017, Tillman Co. issued 15-year bonds with a face value of $1,000,000 and a stated interest rate of 12%, payable semiannually on June 30 and December 31. The bonds were sold to yield 16%.

1. Calculate the issue price of the bond in dollars
2. Calculate the issue price of the bonds as a percentage
3. Make the journal entry to record the issuance of the bond on January 1, 2017
4. Prepare the amortization table for the years 2017, 2018 & 2019
5. Make the journal entries for 2018
6. How much was the interest expense for 2019?
7. On January 1, 2020 $600,000 of the bonds were retired at 105. Make the journal entry to record the retirement.