Problem: The December 31,2025 balance sheet of sandhill Co. included the following items:
7.5% bonds payable due December 31,2029 $2,940,000
Unamortized discount on bonds payable 117,600
The bonds were issued on December 31,2023 at 95. With interest payable on June 30 and December 31. (Use straight-line amortization)
On April 1,2026, Sandhill retired $588,000 of these bonds at 101 plus accrued interest.
Prepare Journal entries to record the above retirement