On 3/1/18, Roland Company sold 6% bonds having a maturity value of $300,000 at a price which provides the bondholders with a 5% yield. The bonds are dated 3/1/18 and mature 3/1/23 with interest payable semiannually on 3/1 and 9/1 of each year. Legal and other costs of $24,000 were incurred in connection with the issue.

a. Prepare the amortization table and all journal entries required in 2018.

b. The bonds are callable at 101, and on 6/1/20 Roland called the bonds and retired them. Prepare all journal entries required in 2020.