rp pack co 254 1. 2015, Black reported $800.000 net loss, ** 115? 3. On January 1, 2015, Kent Company issues 7%, 15 year bonds with a face amount of $200,000 and pay interest on June 30 and December 31. On the issue date, the annual market rate for these bonds is 8%, which implies a selling price of 94. The straight-line method is used to amortize any discount or premium. (25%) Required: 1. Prepare journal entry to record the issuance of bonds. 2. Prepare journal entry to record the first interest payment 3. What total amount of bond interest expense will be recognized over the life these bonds? 4. On January 1, 2014, Man issued $300,000 of 8%, twenty years callable bonds payable at 102, Man has extra cash and wishes to retire the bonds payable on January 1 2017, immediately after making the sixth semiannual interest payment. To retire the bonds, Man pays the market price of 98. Man uses straight line method to amortize premium or discount. (25%) Required: 1. Journalize the issuance of the bond payable on January 1, 2014 2. Journalize the retirement of the bond on January 1, 2017