Effective April 1, 2016. ABC Inc, which has a year-end of December 31st, authorized $1500000 of callable, mortgage bonds (secured by 2200000 of property and equipment at market value ). The bond paid interest at a rate of 8% per year and had a term of 6 year. Interest way payable each September 30th and march 31st.

On July 1, 2017 ABC INC issued 1000 of the bonds in exchange for cash in the total amount of $906000. On October 1, 2019, ABC called the bond and paid the current bond holders $1,150,000 in cash.

prepare the journal entries related to the bonds that the INC entered into its records during the April 1 2016 to Dec 31 2017.

In addition, prepare the journal entry that was recorded when the bonds were redeemed in oct 2019