Problem $14-16($Algo$)$ Debt issue costs; issuance; expensing; early extinguishment; straight$-$line amortization $[$LO$14-2,14-5]$ Journal entry worksheet

$1$

$2$

$3$

$4$

Record the payment of interest.

Note: Enter debits before credits.

$\backslash$table$[[$Date$,$General Journal,Debit,Credit$],[$December $31,2021,,,],[,,,],[,,,],[,,,],[,,,],[,,,]]$ Journal entry worksheet

$1$

$2$

$4$

Record the payment of interest.

Note: Enter debits before credits. Journal entry worksheet

$1$

$2$

$3$

$4$

Record the call of the bonds.

Note: Enter debits before credits.

Cupola Fan Corporation issued $12\%,$ $$550,000,10-$year bonds for $$525,000$ on June $30,2021.$ Debt issue costs were $$3,000.$ Interest is paid semiannually on December $31$ and June $30.$ One year from the issue date $($July $1,2022),$ the corporation exercised its call privilege and retired the bonds for $$530,000.$ The corporation uses the straight$-$line method both to determine interest expense and to amortize debt issue costs.

Required:

$1.$ to $4.$ Prepare the journal entry to record the issuance of the bonds, the payment of interest and amortization of debt issue costs on December $31,2021$ & June $30,2022,$ and the call of the bonds. $($If no entry is required for a transaction$/$event$,$ select $"$No journal entry required" in the first account field.$)$Journal entry worksheet

$1$

$2$

$3$

$4$

Record the issuance of the bonds.

Note: Enter debits before credits.

$\backslash$table$[[$Date$,$General Journal,Debit,Credit,$],[$June $30,2021,$Cash,,$522,000,],[,$Discount and debt issue costs,$5,000,,],[,$Bonds payable,,$527,000,],[,,,,],[,,,,],[,,,,]]$