Holden Company issued the following bonds: Issue date January 1, 2015 Maturity date January 1, 2020 Par value $100,000 Market interest rate at time of issue 10% annually Stated interest rate 9% Issue price $96,149 Interest paid 4.5% semiannually, first on July 1, 2015.

Assume Dec. 31 is the fiscal year-end.

a. Prepare the journal entry to record the issuance of the bonds on Jan. 1, 2015.

b. Prepare the journal entries to record the interest expenses on July 1, 2015, and Dec. 31, 2015.

c. Prepare the journal entry to record the interest payment on Jan. 1, 2016.

Please provide all work for calculations not in the question