E$10-8($Algo$)$ Preparing Journal Entries to Record Issuance of Bonds at Face Value, Payment of Interest, and Early Retirement $[$LO $10-3]$

On January $1,$ Innovative Solutions, Incorporated, issued $$100,000$ in bonds at face value. The bonds have a stated interest rate of $5$ percent. The bonds mature in $10$ years and pay interest once per year on December $31.$

Required:

$1,2$ & $3.$ Prepare the required journal entries to record the bond issuance, interest payment on December $31,$ early retirement of the bonds. Assume the bonds were retired immediately after the first interest payment at a quoted price of $103.($If no entry is required for a transaction$/$event$,$ select $"$No Journal Entry Required" in the first account field.$)$