Use the following information to answer the following three questions:

On July 1, 2003, Jones Corp. issued $60,000 face value, 10-year, 12% coupon bonds paying interest semiannually on June 30^th and Dec 31^st. The market (yield) rate on the date of issuance was 10%. The companys fiscal year end is Dec. 31^st. The present value factor of a lump sum is .613 and the present value factor of an annuity is 7.721.

1. Record the journal entry made when the bonds were issued on July 1^st, 2003? (Hint: first use the coupon rate to compute the semi-annual interest payment; then compute the cash received at issuance by using the present value factors to determine the sum of the present value of the interest payments and the present value of the lump sum face value payment).

2. Record the journal entry made to record the first interest payment?

3. Record the journal entry made to record the retirement of the bonds at the end of the bonds life.