Prepare journal entries to record the following transactions relating to long-term bonds of Grier, Inc. (Show computations.) The 10-year bonds were authorized for sale on January 1, 2016.

(a) On May 1, 2016, Grier, Inc. issued $600,000, 6% bonds for $587,640, which includes accrued interest. Interest is payable semiannually on June 30 and December 31, with the bonds maturing on December 31, 2025. The bonds are callable at 102.

(b) On June 30, 2016, Grier paid interest on the bonds and recorded amortization. Grier uses straight-line amortization.

(c) On December 31, 2016, Grier paid interest and recorded amortization on all of the bonds, and then purchased $360,000 of the bonds at the call price.