Prepare journal entries to record the following transactions related to long-term bonds of Renn Co.
a. On April 1, 2004, Renn issued $900,000, 9% bonds for $968,163 including accrued interest. Interest is payable annually on January 1, and the bonds mature on January 1, 2014.
b. On July 1, 2006 Renn retired $270,000 of the bonds at 102 plus accrued interest. Renn uses straight-line amortization.