Assume that on July $1,2027,$ Vaughn Co$.$ retires $40\%$ of the bonds at a cost of $$2,094,000$ plus accrued interest. Prepare the

journal entry to record this retirement. $($Round answers to $0$ decimal place, e$.$g$.38,548.$ If no entry is required, select $"$No Entry" for the

account titles and enter O for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent

manually. List all debit entries before credit entries.$)$

Debit

Credit

Premium on Bonds Payable

Cash

$($To record interest$)$

July $1,$

$2027$

Bonds Payable

Premium on Bonds Payable

Loss on Redemption of Bonds

$($To record reacquisition$)$