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Champion Oil issued 10-year bonds dated January 1, 2020. The bonds were issued on March 1, 2020, with accrued interest. Interest was payable on the
Champion Oil issued 10-year bonds dated January 1, 2020. The bonds were issued on March 1, 2020, with accrued interest. Interest was payable on the bonds on January 1 and July 1 of each year. The company's year-end was December 31. Champion followed ASPE and chose to use the straight-line amortization method. On May 31, 2023, Champion retired a portion of the bond issue, paying any accrued interest at that date. Addtional information pertaining to the bond issue follows: Face value of bonds Issue price of bonds Bond coupon rate Portion of bond issue retired Bond retirement (repurchase) price $ 875,000 96 9% 28% 98 Required: a) Prepare the journal entry for the issuance of the bond on March 1, 2020. b) Prepare any journal entries required on July 1, 2020 and December 31, 2020. c) Prepare any journal entries required for the retirement of a portion of the bond issue on May 31, 2023
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