On June $30,2009,$ Martinez Company issued $12\%$ bonds with a par value of $$750,000$ due in $20$ years. They were issued at $98$ and were callable at $104$ at any date after June $30,2017.$ Because of lower interest rates and a significant change in the companys credit rating, it was decided to call the entire issue on June $30,2018,$ and to issue new bonds. New $8\%$ bonds were sold in the amount of $$1,020,000$ at $101$; they mature in $20$ years. Martinez Company uses straight$-$line amortization. Interest payment dates are December $31$ and June $30.($a$)$ Prepare journal entries to record the redemption of the old issue and the sale of the new issue on June $30,2018.($b$)$ Prepare the entry required on December $31,2018,$ to record the payment of the first $6$ months interest and the amortization of premium on the bonds. $($Round answers to $0$ decimal places, e$.$g$.38,548.$ If no entry is required, select $"$No Entry" for the account titles and enter $0$ for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.$)$ No$.$ Account Titles and Explanation Credit $($a$)($To record the redemption of the old issue$)($To record the sale of the new issue$)$

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a Journal entries to record the redemption of the ... View the full answer