Question - Hurst, Incorporated sold its 8% bonds with a maturity value of $3,000,000 on April 1, 2013 for $2,946,000. At the time of the sale, the bonds had 5 years until they reached maturity. Interest on the bonds is payable semiannually on April 1 and Oct 1. The bonds are callable at 102 at any time after April 1, 2015. By October 1, 2015, the market rate of interest has declined and the market price of Hurst's bonds has risen to a price of 101. The firm decides to refund the bonds by selling a new 6% bond issue to mature in 5 years. Hurst begins to reacquire its 8% bonds in the market and is able to purchase $500,000 worth at 101. Assuming the firm used straight-line amortization, prepare necessary journal entry to record the retirement of Hurst's 8% bonds. Show calculations.