Prepare journal entries to record the following transactions related to long-term bonds of Quirk Co.

a) On April 1, 2013, Quirk issued $800,000, 9% bonds for $860,589 including accrued interest. Interest is payable annually on January 1, and the bonds mature on January 1, 2023.

b) On July 1, 2015 Quirk retired $240,000 of the bonds at 102 plus accrued interest. Quirk uses straight-line amortization.