The long-term liability section of Twin Digital Corporation's balance sheet as of December 31, 2017, included 14% bonds having a face amount of $40 million and a remaining discount of $1 million. Disclosure notes indicate the bonds were issued to yield 16%, Interest expense is recorded at the effective interest rate and paid on January 1 and July 1 of each year. On July 1, 2018, Twin Digital retired the bonds at 101($40.4 million) before their scheduled maturity Required 1. & 2. Prepare the necessary journal entries for Twin Digital on July 1, 2018. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter your answers in whole dollar.) Answer is not complete. No Date General Journal Debit Credit July 01, 2018 Interest expense Cash Discount on bonds payable 2 July 01,2018 Bonds payable 40,000,000 Loss on early extinguishment Cash Discount on bonds payable