StarCenter issued $2,500,000 of 5%, 20-year bonds. These bonds were issued on January 1, 2017, and pay interest annually on each January 1. The bonds yield 3% and was issued at $3,243,884.

Required:

(a) Prepare the journal entry to record the issuance of the bonds on January 1, 2017.

(b) Prepare a bond amortization schedule up to and including January 1, 2021, using the effective-interest method.

Date	Cash Paid	Interest Expense	Premium Amortization	Carrying Amount of Bonds
1/1/17	----	------	------	3,243,884
1/1/18	125,000	97,317	27,683	3,216,201
1/1/19	125,000	96,486	28,514	3,187,687
1/1/20	125,000
1/1/21	125,000

(c) Assume that on July 1, 2020, StarCenter Co. redeems 30% of the bonds at a cost of $1,000,000 plus accrued interest. Prepare the journal entries to record this redemption.