EXERCISE 10-24 RETIREMENT OF BONDS The December 31, 2001, balance sheet ofWorsham Company includes the following items:

9% bonds payable due December 31 , 2010 Premium on bonds payable

$400,000 10,800 The bonds were issued on December 31, 2000, at 103, with interest payable on June 30 and December 31 of each year The straight-line method is used for premium amortization.

On March 1, 2002, Worsham retired $100,000 of these bonds at 98, plus accrued interest. Prepare the journal entries to record retirement of the bonds, including accrual of interest since the last payment and amortization of the premium.