Prepare journal entries to record the following retirement. (Show your computations) The December 31, 2016 balance sheet of Wolfe Co. included the following items: 7.5% bonds payable due December 31, 2026 $3,000,000 Unamortized discount on bonds payable 120,000 The bonds were issued on December 31, 2016 at 95, with interest payable on June 30 and December 31. (Use straight-line amortization.) On April 1, 2016, Wolfe had an excess of cash and decided to retire $600,000 of these bonds at 101 plus accrued interest.