On January 1, 2018, Petullo Company issued $450,000 of 7%, five-year bonds payable at 105. Petullo Company has extra cash and wishes to retire the bonds payable on January 1, 2019, immediately after making the second semiannual interest payment. To retire the bonds, Petullo pays the market price of 90. Read the requirements. (Assume bonds payable are amortized using the straight-line amortization method.) Requirement 1. What is Petullo Company's carrying amount of the bonds payable on the retirement date? The carrying amount of the bonds payable on the retirement date is $ Requirement 2. How much cash must Petullo Company pay to retire the bonds payable? To retire the bonds, Petullo Company must pay $ Requirement 3. Compute Petullo Company's gain or loss on the retirement of the bonds payable. (Use parentheses or a minus sign for losses.) Petullo Company's gain or loss on the retirement of the bonds payable is $ Zarek Corporation issued 7,000 shares of $4 stated value common stock for $8 per share on July 7. Record the stock issuance. (Record debits first, then credits. Select the explanation on the last line of the journal entry table.) Date Accounts and Explanation Debit Credit Jul. 7