The long-term liability section of Eastern Post Corporations balance sheet as of January 1, 2018, included 10% bonds having a face amount of $40 million and a remaining premium of $6 million. On January 1, 2018, Eastern Post retired some of the bonds before their scheduled maturity. Required:

Prepare the journal entry by Eastern Post to record the redemption of the bonds under each of the independent circumstances below: 1. Eastern Post called half the bonds at the call price of 102 (102% of face amount). 2. Eastern Post repurchased $10 million of the bonds on the open market at their market price of $10.5 million.