Question: On March 1, 2002, the Yi-Ting Company issued bonds dated January 2, 2002, with the following characteristics: Face value $20,000,000 Coupon rate 7.6% Yield to

On March 1, 2002, the Yi-Ting Company issued bonds dated January 2, 2002, with the following characteristics: Face value $20,000,000 Coupon rate 7.6% Yield to maturity 8% Coupon payment dates June 30, Dec. 31 Maturity 15 years The Yi-Ting Company's year-end is December 31. Assuming the Yi-Ting Company uses the effective interest method.

Required

Prepare all journal entries relating to this bond issue for the year 2002.
Assume that on July 2, 2008; the company redeems one half of the bond issue on the open market at 98. Prepare the journal entry on July 2, 2008.

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