A company issued $2,000,000 of 30-year, 8% callable bonds on April 1, 2011, with interest payable on April 1 and October 1. The fiscal year of the company is the calendar year. Journalize the entries to record the following selected transactions:

2011

Apr. 1 Issued the bonds for cash at their face amount.

Oct. 1 Paid the interest on the bonds.

2013

Oct. 1 Called the bond issue at 103, the rate provided in the bond indenture. (Omit entry for payment of interest.)

Present entries to record the selected transactions described below:

(a) Issued $2,750,000 of 10-year, 8% bonds at 97.

(b) Amortized bond discount for a full year, using the straight-line method.

(c) Called bonds at 98. The bonds were carried at $2,692,250 at the time of the redemption.