Tran Inc. issued $500,000 of 8-year, 7% bonds payable on July 1, 2015 when the market rate

Question:

Tran Inc. issued $500,000 of 8-year, 7% bonds payable on July 1, 2015 when the market rate was 6%. Tran Inc. pays interest each June 30 and December 31 and amortizes any discount or premium by the effective interest method. On January 1, 2020, Tran retired 50% of its bonds at 101.5 in the open market.
Requirements
1. Calculate the cash receipt for the bond issuance.
2. Calculate the bond carrying value on January 1, 2020.
3. Calculate the gain or loss on bond retirement.
4. Journalize Tran's issuance of the bonds on January 1, 2015, and bond retirement on January 1, 2020.