Hill Corporation issued $1,200,000 of 7% bonds at 99 on January 2, 2014. Interest is paid semiannually on June 30 and December 31. The bonds had a 10-year life from the date of issue, and the company uses the straight-line method of amortization. On March 31, 2017, Hill recalls the bonds at the call price of 108 plus accrued interest.

Required:

Prepare the journal entries to record the reacquisition (recall) of Hills bonds.

( Please explain solution)