1. National Company issued 6% bonds, dated January 1, with a face amount of $700,000 on January 1, 2020. The bonds are of 8-year duration and mature on December 31, 2027. The market yield for bonds of similar risk and maturity was 4.5%. Interest payments are made semiannually on June 30 and December 31.

g. Prepare the journal entry to record the retirement of the bond at a call price of $726,000 on January 1, 2025.

h. Instead of retirement of the bond as described in g above, assume the bond was retired @105 call price on January 1, 2025. Prepare the journal entry to record this retirement of the bond.