PROBLEM 10-44 REACQUISITION OF BONDS Guerra Company authorized the sale of $500,000 of 12%, 10-year debentures on January 1, 1997. Interest is payable on January 1 and July 1. The entire issue was sold on AprU 1, 1997, at 102 plus accrued interest. On April 1, 2002, $250,000 of the bond issue was reacquired and retired at 99 plus accrued interest. On June 30. 2002. the remaining bonds were reacquired at 9^ plus accrued interest and refunded with an issue of S400,000 of 9% bonds which were sold at 100. Instructions: Give the journal entries for 199" and 2002 (through June 30) on the Guerra Company books. The company's books are kept on a calendar-year basis. (Round to the nearest dollar. Assume straight-line amortization of the premium or discount. Ignore any potential impact of year-to-year market value changes on the accounting for the bonds.)