L/T LIABILITY JOURNAL ENTRIES AND COMPUTATIONS - show all work in the space provided.

1. On July 31, 2011, Sathu Inc. issued $1,000,000 of 10%, 15 year bonds at par and used a portion of the proceeds to call its 600 outstanding 11%, $1,000 face amount bonds, due on July 31, 2021, at 102. On that date, the unamortized bond premium relating to the 11% bonds was $65,000. On the date of the call what journal entry should Sathu record?