2. (9 points) On January 1, 2016, Blue Inc. had outstanding $1,000,000 of 12% bonds with a book value of $966,130 (after interest expense was recorded). The indenture specified a call price of $981,000. The bonds were issued previously at a price to yield 14%. Interest was payable every July 1 and January 1. Blue called the bonds (retired them) on July 1, 2016. Required: 1. Prepare the journal entry to record interest expense on July 1, 2016 2. Prepare the journal entry to record the extinguishment of the Bonds on July 1, 2016 3. (6 points) On February 28, 2021, AAA Corp. issued 10% bonds, dated January 1, with a face amount of $48 million. The bonds were priced at $42 million (plus accrued interest) to yield 12%. Interest is paid semiannually on June 30 and December 31. Required: 1. Determine the amount of accrued interest that was included in the proceeds received from the bond sale. Show calculations. 2. Prepare the journal entry for the issuance of the bonds.