On January 1, 2016, Bubba, Corp. issued 800 $1,000 five-year, 8% bonds at 100.
Interest is payable annually on December 31.
1. The entry to record the sale / issuance on 1.1.16 is:
1.1.16	Cash			800,000
		Bonds Payable			800,000
2. The entry to record the payment of the interest on 12.31.16 is:
12.31.16	Interest Expense
		Cash
3. The entry to record the early repurchase of the bonds for $1,000,000 on 1.1.17 is:
1.1.17