The selected transactions are described below.

1. Issued $5,500,000 of 10-year, 8% bonds at 97.

2. Amortized bond discount for a full year, using the straight-line method.

3. At the end of the third year, called bonds at 98. The bonds were carried at $5,384,500 at the time of the redemption.

Required: Prepare the accounting entries to record the transactions