# Accounting

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The Dec. 31, 2001, balance sheet includes the following items:

9% bonds payable due 12/31/2010 \$800,000
Discount on bonds payable \$21,600

The bonds were issued on December 31, 2000, at 97, with interest payable on June 30 and December 31 of each year. The straight-line method is used for discount amortization.

On March 1, 2002, they retired \$400,000 of these bonds at 98 plus accrued interest. Prepare the journal entries to record retirement of the bons, including accrual of interest since the last payment and amortization of the discount.

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