Dillard Co. issued $20,000,000 of 5-year, 14% callable bonds on April 1, 2014, at a market rate of 12%. Interest is payable semi-annually on September 30 and March 31.

1. Record the entry for the issuance of the bonds.

2. Record the entries for interest payments and accruals during 2014 and 2015. Dillard Co. uses the effective interest method to amortize bond discount/premium.

3. Record the retirement of $10,000,000 of the bonds at 103 on February 1, 2016.

4. Record the entry for the March 31, 2016 payment of interest.

Check figures:

2014 Interest expense                  1,929,131

2015 Interest expense                  2,548,821

2016 Gain on bond retirement       213,900

2016 Interest expense                  422,329 (through March 31, 2016)