On May 1, 1979, the Oliver Company acquired \(\$ 1,000,000\) par value of bonds of the Bret Company for \(\$ 1,395,000\) plus accrued interest. Costs of acquisition amounted to an additional \(\$ 5,000\). The bonds bear interest at 9 percent payable on March 31 and September 30 and mature on March 31, 1989. Use straight-line amortization of premium.

a Present journal entries on the books of the Oliver Company from May 1, 1979, through March 31, 1980, inclusive. Assume that the books are closed annually on December 31.

b Present the journal entry (or entries) for the sale of the bonds on July 1, 1982, at 103.5 plus accrued interest.