On January 1, 2020, Kingbird Corporation issued $2,940,000, 5-year, 8% bonds at 97. The bonds pay interest annually on January 1. By January 1, 2022, the market rate of interest for bonds of risk similar to those of Kingbird Corporation had risen. As a result, the market price of these bonds was $2,450,000 on January 1, 2022-below their carrying value of $2,887,080. Geoff Marquis, president of the company, suggests repurchasing all of these bonds in the open market at the $2,450,000 price. But to do so the company will have to issue $2,450,000 (face value) of new 10-year, 12% bonds at par. The president asks you, as controller, "What is the feasibility of my proposed repurchase plan?" Answer the following. (a) Prepare the journal entry to redeem the 5-year bonds on January 1, 2022. (Credit account titles are automatically indented when the amount is entered. Do not indent manually.) Account Titles and Explanation Debit Credit Bonds Payable 2940000 Cash 2450000 Discount on Bonds Payable Gain on Bond Redemption Prepare the journal entry to issue the new 10-year bonds. (Credit account titles are automatically indented when the amount is entered. Do not indent manually.) Account Titles and Explanation Debit Credit