Prepare entries to record issuance of bonds, interest accrual, and bond redemption

Hornung Electric sold $300,000, 10%, 10 yr bonds on Jan. 1, 2006. The bonds were dated Jan. 1 and paid interest on Jan 1 and July 1. The bonds were sold at 104.
Instructions:

a. Prepare the journal entry to record the issuance of the bonds on Jan. 1, 2006.
b. At Dec. 31, 2006 the balance in the Premium on bonds payable account is $10,800. Show the balance sheet presentation of accrued interest and the bond liability at Dec. 31, 2006.
c. On Jan. 1 2008 when the carrying value of the bonds was $309,600, the company redeemed the bonds at 105. Record the redemption of the bonds assuming that interest for the period has already been paid. (loss=$5,400)

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