On January $1,1990,$ Red Sox C$.$ issued a five$-$year bond with a par value of $$1,000.$ The bond$$s

annual coupon rate was $8\%($with annual interest payments to be made once a year on December

$31).$ The annual market interest rate at issuance was $4\%.$

a$)$ Prepare the journal entry at the time of bond issuance.

b$)$ Prepare the journal entry to record the interest expense in $1991.$

c$)$ After two full periods, on January $1,1992,$ when the annual market interest rate changed to

$10\%,$ Red Sox Co$.$ retired $($repurchased$)$ its bond. Please show the journal entries at the January

$1,1992$ bond repurchase.