On January 1, 2015 Sprint issues $300,000 of 12-year bonds with a coupon rate of 9.375% when the market rate for similar bonds is 10%. Interest is paid semi-annually on June 30^th and December 31^st each year.

Prepare the following journal entries:

1. Issuance of the bonds on January 1, 2015

2. Record the payment of interest on both June 30, 2015 and December 31, 2015.

3. On the balance sheet for December 31, 2015 what will be the carrying value of the bonds (how will the bonds be presented on the balance sheet)

4. What will the carrying value be on December 31, 2018.

e. Prepare the journal entry for December 31, 2026 when the bonds are repaid.