JenStar issues $600,000 of 8.50% bonds on July 1, 2008. Additional information on the bond issue is as follows:

Bond date		January 1, 2008
Maturity date		January 1, 2018
Yield rate		10%
Interest payment dates		June 30, December 31

a) Record the bond issue and the first interest payment under the effective-interest method. General Journal Page G1 Date Account/Explanation PR Debit Credit 1/Jul Cash 545,616.06 Bonds payable 545,616.06 Issuance 31/Dec Interest expense. 27,280.80 Bonds payable 1,780.80 Cash 25,500 interest payment b) On August 1, 2013, the company called and cancelled 30% of the bonds for the market price of 103 plus accrued interest. Record the entry for the sale of the bond. (Note: interest was paid on June 30, 2013) General Journal Page G1 Date Account/Explanation PR Debit Credit 1/Aug Bonds payable. Loss on bond sale. Interest expense. Cash cancelled bond c) Record the interest entry on December 31, 2013, on the remaining bonds. General Journal Page G1 Date Account/Explanation PR Debit Credit 31/Dec Interest expense. + - Bonds payable Cash remaining bonds