Tom Ltd. issued $3,000,000 of 6%, 10 year bonds on September 30, 2022 when the effective interest rate was 8%. The bonds pay interest semi-annually on June 30 and December 31. The firm uses the effective interest method of amortizing discounts and premiums. On September 30, 2023, 70% of the bonds were called in at 98 and retired. (Use an amortization table)

(a) Prepare journal entries for the following:

September 1, 2022 Issuance of bonds

December 31, 2022 Payment of interest

June 30, 2023 Payment of interest

September 30, 2023 Retirement of 70% of the bonds