Sarasota, Inc. had outstanding $$5,580,000$ of $12\%$ bonds $($interest payable July $31$ and January $31)$ due in $10$ years. On July $1,$ it

issued $$9,400,000$ of $10\%,15-$year bonds $($interest payable July $1$ and January $1)$ at $99.$ A portion of the proceeds was used to call

the $12\%$ bonds $($with unamortized discount of $$111,600)$ at $102$ on August $1.$

Prepare the journal entries necessary to record issue of the new bonds and the refunding of the bonds. $($Round answers to $0$

decimal places, e$.$g$.38,548.$ If no entry is required, select $"$No Entry" for the account titles and enter $0$ for the amounts.

Credit account titles are automatically indented when amount is entered. Do not indent manually.$)$

Date

Account Titles and Explanation

Debit

Credit

July $1$

$($To record issuance of $10\%$ bonds$)$

August $1$

$($To record retirement of $12\%$ bonds$)$