Ayayai, Inc. had outstanding $$6,060,000$ of $12\%$ bonds $($interest payable July $31$ and January $31)$ due in $10$ years. On July $1,$ it issued $$8,990,000$ of $10\%15$ year bonds $($interest payable July $1$ and January $1)$ at $98.$ A portion of the proceeds was used to call the $12\%$ bonds $($with unamortized discount of $$60,600$ at $101$ on August $1.$

Prepare the journal entries