Question: A company issues a $ 5 0 0 , 0 0 0 , 2 0 - year, 6 % bond that pays interest semiannually. Competing

A company issues a $500,000,20-year, 6% bond that pays interest semiannually. Competing investments offer a market rate of 8% interest. If the bonds issue at a price of $615,596, prepare the journal entry for the first interest payment. Show your work.
Also, assume that the company calls/retires the bonds at 98 after 17 years. Create the journal entry for this retirement transaction.

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