Required a. Prepare journal entries to record the issue and retirement of these bonds. (Assume the June interest expense has already been recorded.) General Journal Date Description Debit Credit 07/01/09 Cash 120,000 0 Bond discount 5,000 0 Bonds payable 0 125,000 07/01/16 Bonds payable 125,000 Loss on retirement of bonds Bond discount 3,407 Cash 126,250 4,657 0 b. Post the journal entries from part a to their respective T-accounts. Cash (A) Bonds Payable (L) 07/01/09 120,000 0 07/01/09 125,000 07/01/16 126,250 07/01/16 125,000 Loss on Retirement of Bonds (E) 07/01/09 07/01/16 4,657 0 07/01/09 07/01/16 Bond Discount (XL) 5,000 0 3,407 c. Record each of the transactions from part a in the financial statement effects template. Income Statement Transaction 7/1/09 Issue bonds at a discount 7/1/16 Retire bonds issued on 7/1/09 Balance Sheet Cash Asset + Noncash Assets = Liabilities 120,000+ 125,000 - 121,200 X + 0 OX = Net Income Contra-Liabilities + Contributed Capital + Earned Capital 5,000+ 0 0X + 0 + + Revenue 0- Expenses 0 OX