Gatlin Company issued $300,000, 8%, 15-year bonds on December 31, 2011, for $288,000. Interest is payable annually on December 31. Gatlin uses the straight-line method to amortize bond premium or discount.Prepare the journal entries to record the following events.
| (a) |
The issuance of the bonds. |
| (b) |
The payment of interest and the discount amortization on December 31, 2012. |
| (c) |
The redemption of the bonds at maturity, assuming interest for the last interest period has been paid and recorded. |