On June 30, 2013, Pronghorn Limited issued 12% bonds with a par value of $809,000 due in 20 years. They were issued at 98 and were callable at 104 at any date after June 30, 2020. Because of lower interest rates and a significant change in the companys credit rating, it was decided to call the entire issue on June 30, 2020, and to issue new bonds. New 10% bonds were sold in the amount of $1,011,000 at 102; they mature in 20 years. The company follows IFRS and uses the effective interest method. The interest payment dates are December 31 and June 30 of each year.

Prepare an effective interest table for the bonds for the inception of the bond to the date of the redemption. (Round interest rate values to 3 decimal places, e.g. 1.251% and final answers to 2 decimal places, e.g. 52.75.)

Schedule of Bond Discount Amortization Effective Interest Method Cash Paid Interest Expense Discount Amortized Date June 30 2013 Dec. 31 2013 $ $ $ $ June 30 2014 Dec. 31 2014 June 30 2015 Dec. 31 2015 June 30 2016 Dec. 31 2016 June 30 2017 Dec. 31 2017 June 30 2018 Dec. 31 2018 Interest Expense Discount Amortized Carrying Amount $ $ $ Prepare journal entries to record the retirement of the old issue and the sale of the new issue on June 30, 2020. (Round interest rate values to 3 decimal places, e.g. 1.251% and final answers to 2 decimal places, e.g. 52.75. Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter for the amounts.) Date Account Titles and Explanation Debit Credit June 30, 2020 (To record reacquisition of bonds payable) June 30, 2020 (To record issuance of new bonds) Prepare the entry required on December 31, 2020 to record the payment of the first six months of interest and the amortization of the bond premium. (Round interest rate to 3 decimal places, e.g. 15.251% and final answers to 0 decimal places, e.g. 5,275. Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter for the amounts.) Date Account Titles and Explanation Debit Credit Dec. 31, 2020 e Textbook and Media List of Accounts