Before maturity, Foster Incorporated sold $$500,000$ of $12\%$ bonds on January $1,2019,$ for $$470,143\mathrm{.}47,$ a price that yields a $14\%$ interest rate. The bonds pay interest semiannually on June $30$ and December $31$ and are due December $31,2022.$ Foster uses the effective interest method.

Required:

Prepare an interest expense and discount amortization schedule.

Assume the company reacquired the bonds on July $1,2021,$ at $104.$ Prepare journal entries to record the bond retirement.