On May 1, 2021, Cooper Furniture issued $100 million of its 8% bonds. The bonds mature in 5 years. The bonds were priced to yield 10%. Interest is payable semiannually on October 31 and April 30. Cooper Furniture records interest at the effective rate.

Assume all bonds are retired at 98.5 on April 30, 2022 right after the second payment is made. Prepare the necessary journal entry