[The following information applies to the questions displayed below] On January 1, 2024, Splash City issues $420,000 of 7% bonds, due in 10 years, with interest payable semiannually June 30 and December 31 each year. The market interest rate on the issue date is 8% and the bonds issued at $3. 2. If the market interest rate drops to 7% on December 31,2025 , it will cost $420.000 to retire the bonds. Record the reti onds on December 31. 2025. (If no entry is required for a particular transaction/event, select "No Journal Entry Requ first account field. Round your final answers to the nearest whole dollar.)