TIepare lle appropriate journal entry to record the early retirement of the bonds. 4) Atlantic Company issues 10-year bonds, as follows: Bonds are dated to be issued on: Bonds are issued on: Par value of bonds: Stated annual interest rate: Price at date of issue: Semiannual interest payments: Bond issue costs incurred: Amortization method used: January 1, 20x1 June 1, 20x1 $ 900,000 4% 101.15 January 1 and July 1 $ 16,100 Straight-line Straight-line amortization of bond issue costs and premium or discount amortization are once ayear, at year-end. SEE NEXT PAGE FOR REQUIREMENTS FOR PROBLEM 4 TESTING YOUR KNOWLEDGE (3) CHAPTER 14: Long-Term Liabilities PAGE 3 REQUIRED: a) Prepare the appropriate adjusting entry (ies) on December 31, 20x1. b) Determine the interest expense reported on the income statement for the year ended December 31, 20x1. c) Determine the interest expense reported on the income statement for the year ended December 31, 20x2. d) Assume bonds were reacquired by Atlantic Company on July 1, 20x4: Percent reacquired 60% 1.04 Reacquisition price Determine the amount of gain or loss recognized at the time of reacquisition