On January 1, 2015, Sandy Davis, Inc. issued 400 $1,000 five-year, 10% bonds at 103.

Interest is payable annually on December 31.

1. The entry to record the sale / issuance on 1.1.15 is:

2. The entry to record the payment of the interest on 12.31.15 is:

3. The entry to record the early repurchase of the bonds on 1.1.16 for $385,000 is: