bonds Journal entry

Problem IV. Prepare journal entries for the following transactions. (if needed round to the nearest dollar if necessary, 15 points total) 1/ 1/2016 Issued a $5,000,000 bond @ 102.0 with 7% interest, the current mkt. interest rate is 6%, for 10 years; interest is to be paid once per year on 12/31/every year. 12/31/2016 prepare the journal entry for the ONCE PER YEAR interest & amortization on the bond. 1/1/2017 Retire the Bond @ at 99.0