P14-4 Premium Amortization Schedule with Retirement before Maturity LO 14.5 LO 14.6 Hillis Corporation issued $600,000 of 13% bonds on January 1, 2019, for $614,752.24. The bonds are due December 31, 2021, were issued to yield 12%, and pay interest semiannually on June 30 and December 31. Hillis uses the effective interest method. Required: 1. Prepare a bond interest expense and premium amortization schedule. 2. Assume the company retired the bonds on September 30, 2021, for $630,000, which includes accrued interest. Prepare the journal entry to record the bond retirement, Cash Credit Expense Debit Premium Debit Date 01/01/19 06/30/19 12/31/19 06/30/20 12/31/20 06/30/21 12/31/21 39,000 39,000 39,000 39,000 39,000 39,000 $ 36,885.13 $ 36,758 24 $ 36,623.74 $ 36,481.16 $ 36,330.03 $ 36,169.83 $2,115 $2,242 $2,376 $2,519 $2,670 $2,830 Book Value of Bonds $ 614,752 24 612,637 37 610,395.62 608,019.35 605,500.52 602,830.55 600,000.38 To enter the journal entries, enter the appropriate account titles in the green-shaded cells in column E and the appropriate amounts in the green-shaded cells in columns 1 and K. An asterisk (*) will appear before incorrect amounts entered in the answer cells. Account titles will not be graded. 2021 Sept. 30 30 Bonds Payable Interest Payable 600,000.00 19,500.00 Cash 630,000.00