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The Indigo Company issued 500, $1,000, 8%, 10-year bonds on January 1, 2020, at 98. Interest is payable annually on January 1. Indigo uses

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The Indigo Company issued 500, $1,000, 8%, 10-year bonds on January 1, 2020, at 98. Interest is payable annually on January 1. Indigo uses straight-line amortization for bond premium or discount. Instructions: Prepare the journal entries to record the following events: (a) The issuance of the bonds. (b) The accrual of the interest and the discount or premium amortization on 12/31/20. (c) The payment of the interest on 1/1/21. (d) The redemption of the bonds at maturity, assuming interest for the last period has been paid and recorded. UPLOAD YOUR ANSWER AS A PDF FILE

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