The long-term liability section of Johnson Laboratories balance sheet as of December 31, 2014, included 10% bonds having a face amount of $230 million and a remaining premium of $9.8 million. On January 2, 2015, Johnson retired some of the bonds before their scheduled maturity.

Required: Prepare the journal entry by Johnson to record the redemption of the bonds under each of the independent circumstances below:

1. Johnson called half the bonds at the call price of 103.6. (4 pts)

2. Johnson repurchased $92 million of the bonds on the open market at their market price of $97.5 million. (4 pts)