On February 1, 2022, Mojito, Inc. issued $2,000,000, 5% bonds for $2,165,000. Interest is payable semiannually on January 31 and July 31 with the bonds maturing on February 1, 2032 (10-year bonds). The bonds are callable at 102. On February 1, 2022, Mojito retired $750,000 of the bonds at the call price.

Required:

Prepare the journal entry for the issuance of the bonds

Prepare any required journal entries for interest payments on July 31, 2022 and January 31, 2023. Mojito uses straight-line amortization to amortize any discount or premium.

Prepare the required entry to record the retirement of the bonds on February 1, 2023.