Question 33 (of 33) 10.00 points The long-term liability section of Twin Digital Company statement of financial position as of December 31, 2011 included 12% bonds ha inga principal amount of$20 million and a remaining discount of $1 million. Disclosure notes indicate the bonds were issued to yield 14%, interest expense is recorded at the effective interest rate and paid on January 1 and July 1 of each year. On July 1, 2012, Twin Digital retired the bonds at 102 ($20.4 million) before their scheduled maturity. Required 1. Prepare the journal entry by Twin Digital to record the semiannual interest on July 1, 2012. (Enter your answers in dollars not in millions.) Debit 1339100 Credit General Journal July 1, 2012 Interest expense Discount on bonds Cash 1200000 2. Prepare the journal entry by Twin Digital to record the redemption of the bonds on July 1, 2012. (Enter your answers in dollars not in millions.) Credit Date July 1, 2012 Bonds payable General Journal Debit 20000000 Loss on early extinguishment Cash 20400000 Discount on bonds payable References Worksheet Learning Objective: 14-06 Record the oVO