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6. On January 1, 2019, Larkspur Corporation issued $500,000, 10%, 5-year bonds, at 98. The bonds...

6. On January 1, 2019, Larkspur Corporation issued $500,000, 10%, 5-year bonds, at 98. The bonds pay semiannual interest on January 1 and July 1. The company uses the straight-line method of amortization for bond premium and discount.

Prepare all of the journal entries that Larkspur Corporation would make related to this bond issue on

a) The January 1, 2019 issue date.

b) The July 1, 2019 interest payment date.

c) Based on the above information, what was the carrying value of the bonds at the time of issue?

d) What was the carrying value after the July 1, 2019 amortization entry?

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