Prepare journal entries to record the following retirement.
The December 31, 2010 balance sheet of Wolfe Co. included the following items:
7.5% bonds payable due December 31, 2018 $1,200,000
Unamortized discount on bonds payable 48,000
The bonds were issued on December 31, 2008 at 95, with interest payable on June 30 and December 31. (Use straight-line amortization.)
On April 1, 2011, Wolfe retired $240,000 of these bonds at 101 plus accrued interest.