Vidovich Corp. produces and sells renewable energy equipment. To finance its operations, Vidovich Corp. issued $1,249,000 of 10-year, 13% callable bonds on January 1, 2014, with interest payable on January 1 and July 1. The fiscal year of the company is the calendar year.

Journalize the entries to record the following selected transactions:

2014
Jan. 1	Issued the bonds for cash at their face amount.
July 1	Paid the interest on the bonds.
2020
July 1	Called the bond issue at 95, the rate provided in the bond indenture. (Omit entry for payment of interest.)