Twilight Corp. wanted 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 and an audit firm. On June 1, 2023, Twilight sold long-term bonds with a stated face value of $500,000. The bonds will mature in 10 years and have a stated interest rate of 10%. Other bonds that Twilight has issued with identical terms are traded based on a market rate of 8%. 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, 2025, Twilight decided to retire 20% of the bonds. At that time the bonds were selling at 102.

A) Prepare the journal entry for the issuance of the bonds on June 1, 2023.
B) Complete the interest schedule below until May 31, 2025
Date	Cash	Interest Expense	Amortization	Carrying Value of Bond
June 1/2023
Nov 30/2023
May 31/2024
Nov 30/2025
May 31/2025

C) Prepare all entries from after the issue of the bond until December 31, 2023.

D) Calculate the gain or loss on the partial retirement of the bonds on June 1, 2025.

E) Prepare the journal entry to record the partial retirement on June 1, 2025.