Problem $14-16($Static$)$ Debt issue costs; issuance; expensing; early extinguishment; straight$-$line amortization $[$LO$14-2,14-5]$

Cupola Fan Corporation issued $10\%,$ $$400,000,10-$year bonds for $$385,000$ on June $30,2024.$

Debt issue costs were $$1,500.$

Interest is paid semiannually on December $31$ and June $30.$

One year from the issue date $($July $1,2025),$ the corporation exercised its call privilege and retired the bonds for $$395,000.$

The corporation uses the straight$-$line method both to determine interest expense and to amortize debt issue costs.

Required:

$1.$ to $4.$ Prepare the journal entries to record the issuance of the bonds, the payment of interest and amortization of debt issue costs on December $31,2024$ & June $30,2025,$ and the call of the bonds.

Note: If no entry is required for a transaction$/$event$,$ select $"$No journal entry required" in the first account field.