On January $1^{st},2000$ the Lily Peng Corporation sold $30,000$ of ifs $12\mathrm{.}0\%,30$ year, $$1,000$ face value bond to yleld $10\mathrm{.}0\%$ annually, Interest is pald semlannually. Interest payment dates are June ${30}^{th}$ and December ${31}^{st}$ of each year. The company uses the effectlve Intersst method to amortize any bond discounts or premlums. The issuing cost incurred were $$900,000,$ they are to be amortized straight line over the estimated useful life of the bond. On July $1^{st},2014,$ the Lily Peng Corporation retires $6,000$ of its bonds through an open market purchase $($it repurchases them for cash$).$ At that time the bonds were quoted on the market at a price of $103.$ Tiffany Lane Usita, the Toronto industrialist, had purchased the bonds. Expense$/$amortize the bond issue cost to Interest Expense.

Required:

Calculate the cash received from the sale of the bonds.

Prepare the journal entries on the books of the Lily Peng Corporation to record the following January $1^{st},2000$ : issuance of the bonds $($Gross or Net Method is acceptable$).$

Prepare the journal entries on the books of the Lily Peng Corporation to record the following Payments of interest for the year $2000,$ and any other amortization.

Prepare the journal entries on the books of the Lily Peng Corporation to record the following July $1^{st},2014,$ the extinguishment of $6,000$ bonds.

Payments of interest for December ${31}^{st},2014,$ and any other amortization.

Prepare the accounting entry on July $1^{st},2014,$ if the policy of the Lily Peng Corporation had been to carry the bonds at fair market value.