Question: On Dec. 31, 2019, Manama Inc. issues callable bonds that have a $350,000 par value, mature in 10 years, and pay 6% interest semiannually on

On Dec. 31, 2019, Manama Inc. issues callable bonds that have a $350,000 par value, mature in 10 years, and pay 6% interest semiannually on June 30 and December 31. The bonds are sold at $270,000. On Dec. 31, 2020, the company called on the bonds and paid $266,000 to outstanding bondholders.

Required: Prepare journal entries to record:

1. The bonds issuance on Dec. 31 2019.

2. The semi-annual interest payment.

3. The bonds retirement.

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