Prepare journal entries to record the following retirement. (Show computations and round to the nearest dollar.)

The December 31, 2014 balance sheet of Wolfe Co. included the following items:

7.5% bonds payable due December 31, 2022...................................$2,000,000

Unamortized discount on bonds payable.............................................80,000

The bonds were issued on December 31, 2012 at 95, with interest payable on June 30 and December 31. (Use straight-line amortization.)

On April 1, 2015, Wolfe retired $400,000 of these bonds at 101 plus accrued interest.