Prepare journal entries to record the following retirement.

Problem 2 Prepare journal entries to record the following retirement. (Show computations and round to the nearest dollar.) The December 31, 2016 balance sheet of Wolfe Co. included the following items : 7.58 bonds payable due December 31, 2019 $1 , 200, 000 Unamortized discount on bonds payable 48, 000 The bonds were issued on December 31, 2014 at 95, with interest payable on June 30 and December 31. (Use straight- line amortization.) On April 1, 2017, Wolfe retired $240,000 (20%) of these bonds at 101 plus accrued interest