On January 1, 2012, Chilton Ltd. issued $500,000, 5%, five-year bonds. The bonds were issued to yield a market interest rate of 6%. Chilton's year end is December 31. On January 1, 2014 immediately after making and recording the semi-annual interest payment, Chilton redeemed the bonds. A partial bond amortization schedule is presented below.

Instructions
(a) Prepare the journal entry to record the payment of interest on July 1, 2013.
(b) Prepare the journal entry to accrue the interest expense on December 31, 2013.
(c) Prepare the journal entry to record the payment of interest on January 1, 2014.
(d) Prepare the journal entry to record the redemption of the bonds assuming they were redeemed at 100.
(e) Prepare the journal entry to record the redemption of the bonds assuming they were redeemed at 96.

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Semi-Annual Bond Interest Period Interest Payment Interest Expense Amortization Amortized Cost January 1, 2012 July 1, 201:2 January 1, 2013 July 1, 2013 January 1, 2014 July 1, 2014 January 1, 2015 $478,674 $12,500 12,500 12,500 12,500 12,500 12,500 $14,360 14,416 14,474 14,533 14,594 14,657 $1,860 1,916 1,974 2,033 2,094 2,157 480,534 482,450 484,424 486,457 488,551 490,708