StarCenter Co. is building a new music arena at a cost of $5,600,000. It received a down payment of $600,000 from local businesses to support the project, and now needs to borrow $5,000,000 to complete the project. It therefore decides to issue $5,000,000 of 8%, 20-year bonds. These bonds were issued on January 1, 2024, and pay interest annually on each January 1. The bonds yield 10%. Instructions a. Prepare the journal entry to record the issuance of the bonds on January 1, 2024. b. Prepare a bond amortization schedule up to and including January 1, 2028, using the effective-in- terest method. c. Assume that on July 1, 2027, StarCenter Co. retires 40% of the bonds at a cost of $2,040,000 plus accrued interest. Prepare the journal entry to record this retirement.