Middleton Co. issued $800,000, 8%, 5 year bonds on January 1, 2014 at 99. Interest on these bonds is payable annually on January 1. Middleton Co. uses the straight-line method to amortize bond discount and premium. Instructions:
Journalize the transactions for:
(a) The issuance of the bonds on January 1.
(b ) The accrual of interest on December 31 and the amortization of bond discount.
(c) The payment of interest on January 1, 2015.
(d ) The retirement of the bonds at maturity. GENERAL JOURNAL DATE LP Debit Credit 1/1/2014 12/31/2014 1/1/2015 1/1/2019.