Fredericton Aerospace Inc. raised $10,500,000 by selling $10,000,000 of six-year, 4% bonds dated January 1, 2021. Fredericton used part of the proceeds to pay its investment bank’s fee of $400,000 and related legal and accounting fees of $200,000. 

Interest is payable on June 30 and December 31 each year. Fredericton can call the bonds on January 1, 2024, at 101. The company exercises this privilege, redeeming 40% of the bonds on the call date and retiring them. The company’s year-end is December 31.

Required:

Prepare journal entries to record:
a. The issuance of the bonds on January 1, 2021.
b. Payment of interest and related amortization on December 31, 2023.
c. Repurchase of the bonds on January 1, 2024.
d. Retirement of the remaining bonds on December 31, 2026, assuming that the final interest payment has already been recorded in the company’s books.