Analyzing Financial Statement Effects of Bond Redemption Holthausen Corporation issued $400,000 of 11%, 20-year bonds at 108 on January 1, 2013. Interest is payable semiannually on June 30 and December 31. Through January 1, 2019, Holthausen amortized $4,191 of the bond premium. On January 1, 2019, Holthausen retires the bonds at 103. Required a. Prepare journal entries to record the issue and retirement of these bonds. General Journal Date Description Debit Credit 01/01/13 Bond premium 432,000 Bonds payable 400,000 32,000 01/01/19 Bonds payable . 0 0 0 0 Cash Gain on retirement of bonds 412,000 15,809 b. Post the journal entries from part a to their respective T-accounts. Cash (A) Bonds Payable (L) 01/01/13 0 0 01/01/13 0 01/01/19 0 0 01/01/19 0 Gain on Retirement of Bonds (R) R 01/01/13 01/01/19 0 0 0 Bond Premium (L) 0 0 0 01/07/13 01/01/19 0 0 0 C. Record each of the transactions from part a in the financial statement effects template. Remember to use negative signs, when appropriate. Income Statement Earned Capital Cash Asset + Balance Sheet Noncash Asset = Liabilities + 0 = 0+ 0 = 0 + Transaction 1/1/13 Issue bands at a premium 1/1/19 Retire bonds issued on 1/1/13 Expenses = Net Income Contrib. Capital + 0+ 0 + 0 Revenues 0 0 0 O + 0 = 0