Gili Inc. has issued bonds to finance its operations. The bonds were issued on Jan 1st 2020 for $1,183,886. The face value of the bonds is $1,500,000. The annual coupon rate is 10% with interest payable at the end of the year, and maturity of 20 years. Investors demand 13% annual yield for bonds with the same risk characteristics. Required: A. Were the bonds issued in a discount or premium? Explain why B. Show interest expense, discount/premium amortization, and bonds payable, net for 2020 and 2021 using the following table:

Year Coupon Interest expense Discount /Premium Amortization Discount /Premium balance Bonds payable, net 2020 2021 C. Prepare all journal entries related to the bonds for the years 2020 & 2021. D. What is the total interest expense amount for the bonds over 20 years period? Show your calculations. E. On Dec. 31st 2022, just after the interest payment, the company retired half of the bonds for $550,000. Prepare the entry for this transaction.