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On January 1, 2020, Woodson Corporation issued $800,000, 6%, 5-year bonds for $735,110. The bonds were...

On January 1, 2020, Woodson Corporation issued $800,000, 6%, 5-year bonds for $735,110. The bonds were sold to yield an effective-interest rate of 8%. Interest is paid semiannually on July 1 and January 1. The company uses the effective-interest method of amortization. Instructions: Prepare the journal entries that Woodson Corporation would make on January 1, June 30, December 31, 2020, January 1, 2021 related to the bond issue. (b) Prepare the journal entries as of January 1, 2021 assuming the interest was paid and then the bond was redeemed at 101.

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