Friedman Company had bonds outstanding with a maturity value of $500,000.

On April 30, 2013, when these bonds had an unamortized discount of $10,000,

they were called in at 104. To pay for these bonds, Friedman had issued other

bonds a month earlier bearing a lower interest rate. The newly issued bonds had

a life of 10 years. The new bonds were issued at 103 (face value $500,000).

Issue costs related to the new bonds were $3,000.

Prepare a journal entry to record the refunding transaction