LMAC Inc. issued 1,000 of its 8%. S 1,000 bonds at 97 on January 1, 2018, Interest is payable semiannually on January 1 and July 1. The bonds mature on January 1, 2028. MAC uses straight- line amortization. The amount of interest expense for the year is: 2. Meg Company sold $200 000 of 10% ten-ye semiannually on June 30 and December 31. Thebonds were sold for S177,00 priced Meg records interest at the effective rate. Meg should report months ended June 30, 2018, in the amount of ar bonds on January 1. 2018. Interest is payable to yield 14%. bond interest expense for the six 3. On January , 2018, Tiny Tim Industries had outstanding S 1,000,000 of 12% bonds with a carrying amount of $966,130. The indenture specified a call price of $981,000. The bonds were issued previously at a price to yield 14%. Tiny Tim called the bonds (retired them) on July 1, 2018. Prepare two journal entries to retire the bonds: one to pay interest and update interest expense. The second to retire the bonds