155. On January 1, 2016, Grimes Corporation issued $400,000 in 6%, 10-year bonds payable at 104. Interest payments are due each year on December 31. Grimes uses the straight-line method of...

155. On January 1, 2016, Grimes Corporation issued $400,000 in 6%, 10-year bonds payable at 104. Interest payments are due each year on December 31. Grimes uses the straight-line method of amortization on bond premium.
Required:
a) Prepare the journal entry to record issuing the bonds at a premium and the journal entry to record the first interest payment and amortization of the bond premium.
b) Assuming Grimes Corporation called the bonds at a price of $411,000 on January 1, 2020, prepare the journal entry to record this transaction.