q2

Concord, Inc. had outstanding $6,540,000 of 11% bonds (interest payable July 31 and January 31 ) due in 10 years. On July 1 , it issued $8,800,000 of 10%,15-year bonds (interest payable July 1 and January 1) at 98 . A portion of the proceeds was used to call the 11% bonds (with unamortized discount of $261,600 ) at 104 on August 1 . Prepare the journal entries necessary to record issue of the new bonds and the refunding of the bonds. (Round answers to O decimaf places, e.8. 38,548. If no entry is required, select "No Entry" for the account titles and enter O for the amounts, Credit account tites are automatically indented when amount is entered. Do not indent manually)