On January 1, 2016, the Rangler Company Issued $600,000 of Eight-Year

Essay

On January 1, 2016, the Rangler Company issued $600,000 of eight-year bonds at 102. The stated annual interest rate is 8%, and interest is paid on June 30 and December 31. The bonds are callable at 105 plus accrued interest. The bond issue costs were $7,200. The Rangler Company uses the straight-line method to amortize bond discounts and premiums.
Required:
a. Prepare the journal entryies) to record the issuance of the bonds and the bond issue costs.
b. At the end of the sixth year, the company exercised the call option and retired the bonds.
Prepare the journal entries to record the related interest and retirement.