Ike issues $170,000 of 9%, three-year bonds dated January 1, 2013, that pay interest semiannually on June 30 and December 31. They are issued at $174,453. Their market rate is 8% at the issue date.

1) Prepare the January 1, 2013, journal entry to record the bonds' issuance. Record the issue of bonds with a par value of $170,000 cash on January 1, 2013 at an issue price of $174,453. 2) Calculate the total bond interest expense to be recognized over the bonds' life. 3) Prepare an effective interest amortization table for the bonds' first two years. 4) Prepare the journal entries to record the first two interest payments. Record the first interest payment on June 30, 2013. Record the second interest payment on December 31, 2013. 5) Prepare the journal entry to record the bonds' retirement on January 1, 2015, at 98.