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 necessary to record issue of the new bonds and the refunding of the bonds. $($Record entries in the order displayed in the problem statement. If no entry is required, select $"$No Entry" for the account titles and enter $0$ 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.$)$