On April 1, 2016, Becker Company issued 8 percent bonds with a face value of $800,000. The bonds were issued at a price to yield at 10 percent return. The bonds pay semiannual interest on April 1 and October 1. The bonds are dated April 1, 2016, and are due in five years. At the time of issuance, Becker paid $4,000 for legal costs and brokerage expenses associated with the bond issuance. The company uses the straight-line method of amortization for issue costs and the effective interest method of amortization for bond premium or discount and records amortization on each of the semiannual interest payment dates. Becker Companys year ends December 31. On June 1, 2017, Becker retired $200,000 of bonds at 103 plus accrued interest.

Required:

1. Record all entries necessary on April 1, 2016, related to the bonds.

2. Record all entries necessary on October 1, 2016, related to the bonds.

3. Record all necessary adjusting entries on December 31, 2016.

4. Determine the amount of gain or loss on the bonds redeemed on June 1, 2017.

5. Record the entries necessary for the bond redemption.

6. Determine the amount of discount on bonds and the amount of issue costs that should be amortized for the period ended October 1, 2017.