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  3. on january 1, 2009, a company issued 10%, 10-year

On January 1, 2009, a company issued 10%, 10-year bonds with a par value of...

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Accounting

On January 1, 2009, a company issued 10%, 10-year bonds with a par value of $720,000. The bonds pay semiannually. The bonds were issued for $717,860 cash. The comapany paid $725,000 to retire the bonds on Dec 31 of the 6th year. Prepare the journal entries to record the issuance, the first interest payment and the retirement of the bond.

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