Complete all of the necessary journal entries for each situation below for Shelby Corp:

1. On March 1 2010, Shelby Corp. issued $3,200,000, 6% bonds for $3,455,000 including accrued interest. Interest payable annually on January 1, and the bonds mature on January 1, 2020

2. On June 1, 2011 Shelby Corp. retired $800,000 of the bonds at 103 plus accrued interest. Shelby Corp. used straight-line amortization.

Please Explain.