Cheyenne Company issued its 9%, 25-year mortgage bonds in the principal amount of $2,780,000 on January 2, 2006, at a discount of $141,000, which it proceeded to amortize by charges to expense over the life of the issue on a straight-line basis. The indenture securing the issue provided that the bonds could be called for redemption in total but not in part at any time before maturity at 105% of the principal amount, but it did not provide for any sinking fund. On December 18, 2020, the company issued its 11%, 20-year debenture bonds in the principal amount of $3,830,000 at 102, and the proceeds were used to redeem the 9%, 25-year mortgage bonds on January 2, 2021. The indenture securing the new issue did not provide for any sinking fund or for redemption before maturity. (a) Prepare journal entries to record the issuance of (1) the 11% bonds and (2) the redemption of the 9% bonds. (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 amount is entered. Do not indent manually.) No. Date Account Titles and Explanation Debit Credit (1) December 18, 2020 Cash 3944900 Bonds Payable 3830000 Premium on Bonds Pay 114900 (2) January 2, 2021 Bonds Payable 2780000 Loss on Redemption of Bot 201040 Cash 2919000 Discount on Bonds Paya 62040 (6) Indicate the income statement treatment of the gain or loss from redemption