Wishful Thinking (WT) School of Management is building a new facility on a piece of donated land. It received a generous cash dona tion from a local business to s upport the project, and now needs to borrow additional $12,000,000 to c omplete the project. Therefor e WT School of Management issued $12,000,000 of 7.00% 8?y ear bonds. These bonds were issu ed on January 1, 2015, and pay interest annually on each January 1. The bond yield is 9.00%. W T School of Management incurred $480,000 in bond issue costs related to the bond sale.

(a) Prepare the journal entry to record the issuance of the bonds and the related bond issue costs incurred on January 1, 2015 (6 points, rounded to the nearest dollar. show your work).

YEAR 2018 IS GIVEN!! ^^^^^

(c) Assume that on July 1, 2018, WT School of Management retires 60% of the bonds at a cost of $7,200,000 plus accrued interest. Prepare journal entries to record this retirement (10 points, show your work).

(b) Prepare a bond amortization schedule up to and including January 1, 2019, using the effective interest method (4 points). Interest Paid Interest Expense Disc/Prenm Amortization Bond Carrying Date Jan 1, 15 Jan 1, 16 Jan 1, 17 Jan 1, 18 Jan 1, 19 84000 983109 143109 11066542