On August 1 20X5, Petrillacorp. issued bonds with the following characteristics.

a. 55,000 face value

b. 11% nominal rate

c. 16% yield rate

d. Interest dates are 1 February, 1 May, 1 August, 1 November.

e. Bond date is 31 October 20X4

f. Maturity date is 1 November 20X9

Provide all entries required for the bond issue through 1 February 20X6 using the effective interest method. The company has a December 31 Year End

On June 1 20X7, Petrilla retired $28,500 of bonds at 98 through an open market purchase. Provide the entries to update the bond accounts in 20X7 (entries have been completed through 1 May 20X7) for this portion of the bond and to retire the bonds.

Provide the entries required on 1 August 20X7.