IV. Long Term Liabilities. On January 1, 2017, Dutch Co. issued five year, 6 % bonds payable with a face value of $3,500,000 The bonds were issued at 96 and pay interest on January 1 and July 1. Dutch amortizes bond discount using the straight-line method. On December 31, 2019, Dutch retired the bonds early by purchasing them at a market price of 99. The company's fiscal year ends on December 31. Prepare the following journal entries and calculations: REQUIRED: 1. Record the issuance of the bonds on January 1, 2017. Record the semiannual interest payment and amortization of bond discount on July 1, 2017. 2. 3. Record the interest accrual and discount amortization on December 31, 2017. 4. Calculate the carrying value of the bonds payable on December 31, 2019 prior to their retirement and the resulting gain or loss on retirement of the bonds payable on December 31, 2019