E14-10B (Entries for Bond Transactions) On January 1, 2017, Spalding Company sold 12% bonds having a maturity value of $1,000,000 for $1,075,814.74, which provides the bondholders with a 10% yield. The bonds are dated January 1, 2017, and mature January 1, 2022, with interest payable December 31 of each year. Spalding Company allocates interest and unamortized discount or premium on the effective-interest basis. Instructions (a) Prepare the journal entry at the date of the bond issuance. (b) Prepare a schedule of interest expense and bond amortization for 2017-2019. (c) Prepare the journal entry to record the interest payment and the amortization for 2017. (a) Prepare the journal entry to record the interest payment and the amortization for 2019. E14-14B (Entries for Retirement and Issuance of Bonds) On June 30, 2009, Einstein Corp. issued 10% bonds with a par value of $1,000,000 due in 20 years. They were issued at 98 and were callable at 102 at any date after June 30, 2017. Because of lower interest rates and a significant change in the company's credit rating, it was decided to call the entire issue on June 30, 2018, and to issue new bonds. New 6% bonds were sold in the amount of $1,100,000 at 101; they mature in 20 years. Einstein Corp. uses straight-line amortization. Interest payment dates are December 31 and June 30. Instructions (a) Prepare journal entries to record the retirement of the old issue and the sale of the new issue on June 30, 2018. (b) Prepare the entry required on December 31, 2018, to record the payment of the first 6 months' interest and the amortization of premium on the bonds