On June $30,2016,$ Novak Limited issued $11\mathrm{.}50\%$ bonds with a par value of $$754,000$ due in $20$ years. They were issued at $97$Prepare journal entries to record the retirement of the old issue and the sale of the new issue on June $30,2023.($Credit

account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select $"$No

Entry" for the account titles and enter $0$ for the amounts. List all debit entries before credit entries.$)$

and were callable at $102$ at any date after June $30,2023.$

Because of lower interest rates and a significant change in the company's credit rating, it was decided to call the entire issue on

June $30,2023,$ and to issue new bonds. New $8\%$ bonds were sold in the amount of $$1$ million at $102$ ; they mature in $20$ years.

The company follows ASPE and uses straight$-$line amortization. The interest payment dates are December $31$ and June $30$ of

each year.

$($a$)$

Prepare journal entries to record the retirement of the old issue and the sale of the new issue on June $30,2023.($Credit