2. A company issued $2,000,000 of 10 year, 9% callable bonds on January 2, 2010 at 104. Interest is paid on January 2 and July 2. Prepare entries for the following transactions:

2010
January 2	Issued the bonds for cash when sold at 104.
2012
January 2	Assume the interest and amortization has already been recorded. The bonds are called at 102. The unamortized premium is $64,000. Record the redemption of the bonds at the 102 call price.

3. A company issued $2,000,000 of 10 year, 9% callable bonds on January 2, 2010 at 104. Interest is paid on January 2 and July 2. Prepare entries for the following transactions:

2010
January 2	Issued the bonds for cash when sold at 104.
2012
January 2	Assume the interest and amortization has already been recorded. The bonds are called at 102. The unamortized premium is $64,000. Record the redemption of the bonds at the 102 call price