The December 31, 2019 balance sheet of Far Side Imports, Inc. includes the following account balances:

9% bonds payable, due 12/31/2028 $ 800,000

Discount on bonds payable 21,600

The bonds were issued on December 31, 2018, at 97, with interest payable on June 30 and December 31 of each year. The bonds are payable in full upon maturity. The Company uses the straight-line method for discount amortization.

On March 1, 2020, Far Side Imports redeemed early the entire bond issue at a price of 98 plus accrued interest. Prepare the journal entries to record retirement of the bonds, including:

1. accrual of interest since the last payment date
2. amortization of the discount since the last interest payment date
3. Redemption of the bonds, including any related gain or loss. (Hint: dont forget to update the carrying value of the bonds to the redemption date).