On January $1$st$,2000$ the Angel Alvarado Rivera Corporation sold $40,000$ of its $12\mathrm{.}0\%,30$ year, $$1,000$ face value bond to yield $10\mathrm{.}0\%$ annually, interest is paid semi$-$annually. Interest payment dates are June $30$th and December $31$st of each year. The company uses the effective interest method to amortize any bond discounts or premiums. The issuing cost incurred were $$2,000,000,$ they are to be amortized straight line over the estimated useful life of the bond.

On July $15$t$,2018,$ the Angel Alvarado Rivera 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 $103.$

Coleen Joshua Potato, the Toronto industrialist, had purchased the bonds.

Expense$/$amortize the bond issue cost to Interest Expense.

Requires:

$1.$ Prepare the journal entries on the books of the Angel Alvarado Rivera Corporation to record the following Payments of interest for the year $2000,$ and any other amortization.

$2.$ Prepare the journal entries on the books of the Angel Alvarado Rivera Corporation to record the following July $1$st$,2018,$ the extinguishment of $6,000$ bonds.

$3.$ Calculate the cash received from the sale of the bonds.

$4.$ Prepare the journal entries on the books of the Angel Alvarado Rivera Corporation to record the following January $1$st$,2000$: issuance of the bonds $($Gross or Net Method is acceptable$).$

$5.$ Payments of interest for December $31$ st$,2018,$ and any other amortization.

$6.$ Prepare the accounting entry on July $1$st$,2018,$ if the policy of the Angel Alvarado Rivera Corporation had been to carry the bonds at fair market value.