On July 1, 2000, Paramount Inc. issued $\$ 500,000,8$ percent, 30 -year bonds with interest paid semiannually on January 1 and July 1. The bonds were sold when the market rate of interest was 8 percent. On October 1,2003 , the bonds were retired when their fair market value was $\$ 495,000$.

1. Demonstrate, using the present value tables, that the bonds were sold for $\$ 500,000$

2. Provide the journal entry made on July 1 to record the issuance of the bonds 3. Provide the journal entry made on December 31,2000 , relating to interest 4. Provide the journal entries to record the retirement of the bonds.