Ricci Assembly, Inc., issued $800,000 of 8%, 6-year bonds at 97 on January 1, Year 1. Interest was payable semiannually. Through December 31, Year 4, Huang had amortized $14,560 of the bond discount.

On January 1, Year 5, Ricci retires the bonds at 102.

a. Prepare journal entries to record the issuance of the bonds on January 1, Year 1, and the retirement of the bonds on January 1, Year 5.

	Account	Debit	Credit
	CashBonds payableBond discountBond premiumRetained earningsInterest expenseGain on retirementLoss on retirementN/A		Answer
	CashBonds payableBond discountBond premiumRetained earningsInterest expenseGain on retirementLoss on retirementN/A		Answer
	CashBonds payableBond discountBond premiumRetained earningsInterest expenseGain on retirementLoss on retirementN/A		Answer
	To record bond issuance.
	CashBonds payableBond discountBond premiumRetained earningsInterest expenseGain on retirementLoss on retirementN/A		Answer
	CashBonds payableBond discountBond premiumRetained earningsInterest expenseGain on retirementLoss on retirementN/A		Answer
	CashBonds payableBond discountBond premiumRetained earningsInterest expenseGain on retirementLoss on retirementN/A		Answer
	CashBonds payableBond discountBond premiumRetained earningsInterest expenseGain on retirementLoss on retirementN/A		Answer
	To record retirement of bonds.