Dickinson Limited issued 10-year, 7% debentures with a face value of $2 million on January 1, 2010. The proceeds received were $1.7 million. The discount was amortized on the straight-line basis over the 10-year term. The terms of the debenture stated that the debentures could be redeemed in full at any point before the maturity date, at a price of 105 of the principal. There was no requirement for a sinking fund. On January 1, 2017, Dickinson issued a mortgage at 101 with a principal of $3 million secured by land and building. The mortgage had a 25-year amortization period, with interest payable at 8%. Upon issuance of the mortgage, Dickinson used the proceeds to redeem the 7% debentures. Prepare journal entries to record the issuance of the 8% mortgage and the retirement of the 7% debentures. [5 Marks]