The long-term liability section of Twin Digital Corporations balance sheet as of December 31, 2023, included 12% bonds having a face amount of $50 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, 2024, Twin Digital retired the bonds at 102 ($51.0 million) before their scheduled maturity.

Required:

1. & 2. Prepare the necessary journal entries by Twin Digital on July 1, 2024.

record semiannual interest and bond redemption