E14.15 LO 1, 3) (Entries for Retirement and Issuance of Bonds) On June 30, 2014, Mendenhal ple issued 8% bonds with a par value of 600,000 due in 20 years. They were issued at 82.8414 to yield 10% and were callable at 104 at any date after June 30, 2022. 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, 2023, and to issue new bonds. New 6% bonds were sold in the amount of 800,000 at 112.5513 to yield 5%; they mature in 20 years. Interest payment dates are December 31 and June 30 for both old and new bonds. Instructions a. Prepare journal entries to record the retirement of the old issue and the sale of the new issue on June 30, 2023. Unamortized discount is 78,979. b. Prepare the entry required on December 31, 2023, to record the payment of the first 6 months' interest and the amortization of premium on the bonds.

Ei4,15 LO 1, 3) (Entries for Retirement and Issuance of Bonds) On June 30, 2014. Mendenhal ple issued 8% honds with a par value of E600,000 due in 20 years. They were issued at 82.8414 to yield 10% and were callable at 104 at any date after. June 30,2022 . Because of lower interest rates and a significant change in the company's eredit rating, it was decided to call the entire. issue on June 30,2023 , and to issue new bonds. New 6% bonds were sold in the amount of 800,000 at 112.5513 to yield 5%; they mature in 20 years. Interest payment dates are December 31 and June 30 for both old and new bonds. Instructions a. Prepare journal entries to recond the retirement of the old issue and the sule of the new issue on June 30, 2023. Unamortized discount is 78,979. b. Prepare the entry required on December 31, 2023, to reoord the payment of the first 6 months' interest and the amortization of premium on the bonds