transportation company reports under ASPE. it sold $1 500 000 of six years, 6% bonds on august 1 20X2. additional information on the bond issue is as follows:

bond date: february 1 20X2

maturity date: january 31, 20X2

yield rate: 4%

interest payment dates: july 31 and january 31

bond discount/premium amortization: straight-line method

brokerage fees paid from proceeds: $10 000 in bond issue cost

bond measurement: amortized cost method

required:

1) compute the amount the bonds would have sold for on August 1 20X2

2) record the bond issuance on August 1 20X2

3) prepare the adjusting journal entry on december 31, 20X2 (year end)

4) prepare the entry to record interest payment on january 31, 20X3

5) on july 31 20X5, after interest is paid, the company buys and retires 40% of the bond issue at 99. record bond retirement

6) how will the remaining bond appear on the financial position directly after retirement above?