On June 30, 2006, County Company issued 12% bonds with a par value of $828,500 due in 20 years. They were issued at 97 and were callable at 104 at any date after June 30, 2014. Because of lower interest rates and a significant change in the companys credit rating, it was decided to call the entire issue on June 30, 2015, and to issue new bonds. New 10% bonds were sold in the amount of $1,019,000 at 101; they mature in 20 years. County Company uses straight-line amortization. Interest payment dates are December 31 and June 30.

How do I:

Prepare journal entries to record (1) the redemption of the old issue and (2) the sale of the new issue on June 30, 2015.

I have most of the problem solved, but I can't figure out how to calcuate the discount on bonds payable.