Kang Company issues 9%, 20-year bonds with a par value of $200,000 on January 1, 2018 at 103. Interest is payable semiannually on July 1 and January 1. Kang uses straight-line amortization Prepare the journal entries to record: a) The issuance of the bonds. b) The payment of interest and the premium amortization on July 1, 2018 c) The accrual of interest and the premium amortization on December 31, 2018 d) The retirement of the bonds at maturity, assuming interest for the last interest period has been paid and recorded. 14-2 Cortez Company issued $180,000, 11%, 10-year bonds on December 31, 2018, for $170,000. Interest is payable semiannually on June 30 and December 31. Cortez uses the straight-line method of amortization. Prepare the journal entries to record: a) The issuance of the bonds. b) The payment of interest and the discount amortization on June 30, 2019 c) The payment of interest and the discount amortization on December 31, 2019 d) The retirement of the bonds at maturity, assuming interest for the last interest period has been paid and recorded. 14-3 On April 1, Jantz Company issued $80,000, 10%, 10-year bonds dated January 1 at par plus accrued interest. Interest is payable semiannually on July 1 and January 1. Present journal entries to record: a) The issuance of the bonds. b) The payment of interest on July 1, assuming that interest was not accrued on June 30 c) The accrual of interest on December 31. 14-4 For each independent situation below, prepare the appropriate journal entry for the retirement. a) Noble Corporation retired $130,000 face value, 12% bonds on June 30, 2018, at a price of 102 The carrying (book) value of the bonds at the retirement date was $107.500. The bonds pay semiannual interest and the interest payment due on June 30, 2018, has been made and recorded. b) Vargas, Inc. retired $150,000 face value, 12.5% bonds on June 30, 2018 at a price of 96. The carrying (book) value of the bonds at the redemption date was $151,000. The bonds pay semi- annual interest and the interest payment due on June 30, 2018, has been made and recorded