On January 1, 2021, Shay Company Issues $390,000 of 8%, 20-year bonds. The bonds sell for $378,300. Six years later, on January 1, 2027, Shay retires these bonds by buying them on the open market for $407,550. All Interest is accounted for and paid through December 31, 2026, the day before the purchase. The straight-line method is used to amortize any bond discount. 1. What is the amount of the discount on the bonds at issuance? 2. How much amortization of the discount is recorded on the bonds for the entire period from January 1, 2021, through December 31, 2026? 3. What is the carrying (book) value of the bonds as of the close of business on December 31, 2026? 4. Prepare the journal entry to record the bond retirement. Answer is not complete. Complete this question by entering your answers in the tabs below. Req 1 and 2 Req 3 Req 4 1. What is the amount of the discount on the bonds at issuance? 2. How much amortization of the discount is recorded on the bonds for the entire period from January 1, 2021, through December 31, 20267 Answer is not complete. Complete this question by entering your answers in the tabs below. Req 1 and 2 Req 3 Req 4 1. What is the amount of the discount on the bonds at issuance? 2. How much amortization of the discount is recorded on the bonds for the entire period from January 1, 2021, through December 31, 2026? 1. Amount of discount $ 11,700 2. Amortization of discount Answer is not complete. Complete this question by entering your answers in the tabs below. Req 1 and 2 Req 3 Req 4 What is the carrying (book) value of the bonds as of the close of business on December 31, 2026? Bonds Par value $ 11,700 Remaining discount 3,510 Carrying value $ 8,190 Reg 1 and 2 Req 4 > Complete this question by entering your answers in the tabs below. Reg 1 and 2 Req 31 Req 4 Prepare the journal entry to record the bond retirement. No Date: 1 January 01 Bonds payable General Journal Debit 390,000 Credit Loss on retirement of bonds payable Discount on bonds payable Cash 25,740 8,190 407,550