Presented below are two independent situations:

a$)$ On December $31,2021,$ Legault Corporation had $$1,000,000,8\%$ bonds payable issued. The

bonds pay interest on January $1$ and June $1$ of each year, and mature on January $1,2021.$ On

January $2,2022,$ Legault redeemed $60\%$ of these bonds at $101.$ The amortized cost of the

entire bond issue on the retirement date was $$1,026,000.$ The interest payment due on

January $1,2022,$ has been made and recorded.

b$)$ Antonio Inc. redeemed $$500,000$ of its bonds at $98$ on December $31,2021.$ The amortized

cost of the bonds on the retirement date was $$497,500.$ The bonds pay semi$-$annual interest

and the interest payment due on December $31,2021,$ has been made and recorded.

Instructions

For each of the independent situations, prepare the journal entry to record the retirement of

the bonds.