Ashton, Inc., which closes its books on December 31, is authorized to issue \(\$ 800,000\) of nine percent, 20-year bonds dated May 1 , with interest payments on November 1 and May 1.

Required 

Prepare journal entries to record the following events, assuming that the bonds were sold at 100 plus accrued interest on October 1:

a. The bond issuance.

b. Payment of the first semiannual period's interest on November 1.

c. Accrual of bond interest expense at December 31 .

d. Payment of the semiannual interest on May 1 of the following year.

e. Retirement of \(\$ 400,000\) of the bonds at 101 on May 1, Year 2 (immediately after the interest payment on that date).