Sheridan, Inc. had outstanding $$6,060,000$ of $11\%$ bonds $($interest payable July $31$ and January $31)$ due in $10$ years. On July $1,$ it issued

$$9,860,000$ of $10\%,15-$year bonds $($interest payable July $1$ and January $1)$ at $97.$ A portion of the proceeds was used to call the $11\%$

bonds $($with unamortized discount of $$242,400)$ at $104$ on August $1.$

Prepare the journal entries necessary to record issue of the new bonds and the refunding of the bonds. $($Record entries in the order

displayed in the problem statement. 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 the amount is entered. Do not indent manually. List all debit entries before credit entries.$)$

Date

Account Titles and Explanation

Debit

Credit

Cash

Discount on Bonds Payable

Bonds Payable

Bonds Payable

Loss on Redemption of Bonds

Discount on Bonds Payable

$$