ACCOUNTING FOR BONDS On July 1, 2003, Paramount, Inc. issued $500,000, 8%, 30-year bonds with interest paid semiannually on January 1 and July 1. The bonds were sold when the market rate of interest was 80%. On October 1, 2006, the bonds were retired when their fair market value was $495,000. Demonstrate, using the present value tables, that the bonds were sold for $500,000. Provide the journal entry made on July 1 to record the issuance of the bonds. Provide the journal entry made on December 31, 2003, relating to interest. Ee Provide the journal entries to record the retirement of the bonds.