Sherri Corporation issued $800,000 of 12% bonds on April 1, 2018 for $851,705.70. The bonds are due March 31, 2022, were issued to yield 10% and pay interest semiannually on September 30 and March 31. Sherri Corporation uses the effective interest method.

Required:

1. Prepare a bond interest expense and premium amortization schedule.

2. Assume the company retired the bonds on June 30, 2019, for $848,000, which includes accrued interest. Prepare the journal entries to record the bond retirement