Cupola Fan Corporation issued 8%, $440,000, 10-year bonds for $421,000 on June 30, 2016. Debt issue costs were $1,900. Interest is paid semiannually on December 31 and June 30. One year from the issue date (July 1, 2017), the corporation exercised its call privilege and retired the bonds for $425,000. The corporation uses the straight-line method both to determine interest expense and to amortize debt issue costs.

Required:

1. to 4.

Prepare the necessary journal entries. 1. June 30, 2016 Record the issuance of the bonds. 2. December 31, 2016 Record Payment of Interest 3. December 31, 2016 Record Amortization of debt issue cost 4. June 30, 2017 Record the payment of interest 5. June 30, 2017 Record Amoritization od debt issue cost. 6. July 01, 2017 Record the call of the bonds.