Problem I. Bonds Payable J/Es (5 pts. per J/E, total 25 points)

July 1, 2021 Issued a $5,000,000 bond @ 98.0, a 10-year bond, paying 5% interest; the

market interest rate today is 7%. Interest is be paid twice per year on June 30 &

Dec. 31 every year.

Dec. 31, 2021 Prepare the necessary journal entry related to the bond interest.

Dec. 31, 2021 Prepare the Amortization J/E using straight line amortization method.

Jan. 1, 2022 Retire the bond @ 96.0.

Assume below instead of the above Jan. 1, 2022 journal entry:

Jan. 1, 2022 Retire the bond @101.0