On september 1,2017, Erving corporation issued $1,000,000, 6%,10years bonds. Interest is payabpe annually with the first payment due on September 1,2018 and the market rate is 5%.

d) prepare jounal entry on Sep 1,2018 to record the first interest payment.

e)Assume the bonds were redeemed for $1,050,000 at September 31,2020 when the amortized cost was $1,035,000. Record the redemption of the bonds.