IL, Problems: 1. On January 2, 2014, Mahoney Sales issued $10,000 in bonds for $9,400. They were 5-year bonds with a stated rate of 4%, and pay semiannual interest. Mahoney Sales uses the straight-line method to amortize bond discount. (20 points) a. Prepare the journal entry for the issuance of the bonds on January 2, 2014: b. Prepare the journal entry for the first interest payment on June 30, 2014: Prepare the journal entry for the retiremen/extinguishment of the bonds on January 2, 2019