On January 1,2020 , Larkspur Corporation issued $2,790,000,5-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 Larkspur Corporation had risen. As a result, the market price of these bonds was $2,325,000 on January 1,2022 -below their carrying value of $2,739,780. Geoff Marquis, president of the company, suggests repurchasing all of these bonds in the open market at the $2,325,000 price. But to do so the company will have to issue $2,325,000 (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 automotically indented when the amount is entered. Do not indent manually.)