PB10-5 (Algo) Recording and Explaining the Early Retirement of Debt [LO 10-3] QPF Movle Group, owns and operates movle theaters worldwide. Assume the company Issued 3 percent bonds at their $46,800,000 face value and then used all of these cash proceeds to retire bonds with a stated interest rate of 4 percent. At that time, the 4 percent bonds had a carrying value of $45,000,000. Requlred: 1. Prepare the journal entrles to record the Issuance of the 3 percent bonds and the early retirement of the 4 percent bonds. Assume both sets of bonds were issued at face value. 2. Where should QPF report any gain or loss on this transaction? 3. What dollar amount of Interest expense is QPF saving each year by replacing the 4 percent bonds with the 3 percent bonds? Complete this question by entering your answers in the tabs below. Prepare the journal entries to record the issuance of the 3 percent bonds and the early retirement of the 4 percent bonds. Assume both sets of bonds were issued at face value. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.) A Record the issuance of 3 percent bonds in the amount of $46,800,000. B Record the retirement of the 4 percent bonds which has a carrying value of $45,000,000. Note: = journal entry has been entered