Twilight Corp. desired to raise cash to fund its expansion by issuing long-term bonds. The corporation hired an investment banker to manage the issue (best efforts underwriting) and also hired the services of a lawyer, an audit firm, etc. On June 1, 2017, Twilight sold $500,000 in long-term bonds. The bonds will mature in 10 years and have a stated interest rate of 8%. Other bonds that Twilight has issued with identical terms are traded based on a market rate of 10%. The bonds pay interest semi-annually on May 31 and November 30. The bonds are to be accounted for using the effective-interest method. On June 1, 2019 Twilight decided to retire 20% of the bonds. At that time the bonds were selling at 98. Instructions (Round all values to the nearest dollar)

a) Prepare the journal entry for the issuance of the bonds on June 1, 2017.

b) What is the interest expense related to these bonds that would be reported on Twilight's calendar 2017 income statement?

c) entries related to the bonds after June 1 and up to and including December 31, 2017

d) Calculate the gain or loss on the partial retirement of the bonds on June 1, 2019.

e) Prepare the journal entries to record the partial retirement on June 1, 2019.