Johnson Corp issued 12% bonds with a par value of $500,000 due in 10 years. They were issued at 102 and callable any time at 104. When the rate environment changed, Johnson Corp called the bonds. Their plan was to retire the bonds and issue new ones at a lower interest rate. Johnson Corp issued the original bonds on July 1, 2015, and called the bonds on July 1, 2020. On July 1, 2020 they issued new bonds at 3% for $500,000, due in 10 years and they were sold at 98. Johnson uses straight-line amortization. Interest payment dates are July 1 and Jan 1.

A) Prepare the JE to record the retirement of the old bonds and the sale of the new bonds on July 1, 2020

B) Prepare the JE required on January 1, 2021.