On January 1, 2016 Able Company issued (sold) $500,000 8% bonds 20 year bonds for $460,000 when the market rate of interest

was 10%. These semi-annual bonds pay interest on July 1 and January 1 of each year.

On January 2, 2017 Able Company retired the bonds by paying $471,000.

REQUIRED;

A) MAKE THE JOURNAL ENTRY ABLE MAKES WHEN IT SELLS THE BONDS ON JANUARY 1, 2016

B) MAKE THE JOURNAL ENTRY ABLE MAKES ON JULY 1 2016 WITH THE FIRST INTEREST PAYMENT

C) MAKE THE JOURNAL ENTRY ABLE MAKES ON DECEMBER 31, 2016 CONNECTED WITH THE BONDS

D) MAKE THE JOURNAL ENTRY ABLE MAKES ON JANUARY 2, 2017 WHEN IT RETIRES THE BONDS.