Case, Inc issues $1,000,000 of 6%, 10-year bonds dated January 1, 2021, that pay interest semiannually on June 30 and December 31. The bonds are issued at a price of $97.

Required

1. Prepare the journal entry to record the bonds' issuance.

2. For each semiannual period, compute(a) the cash payment, (b) the straight-line discount amortization, and (c) the bond interest expense.

3. Determine the total bond interest expense that will be recognized over the life of these bonds.

4. Prepare the first year of an amortization table like Exhibit14.7(In book) using the straight-line amortization method. Note: the table should reflect the June 30 and December 31,2021 interest payment dates.

5. Prepare the journal entry to record the first interest payment on June 30, 2021.

6. Prepare the journal entry to record the retirement of the bonds on December 31, 2030.(Dont include the final interest payment that would already have been recorded on December 31, 2030.

7. Assume that the bonds are issued at a price of $102. Repeat requirements 1 through 5.