The long-term liability section of Twin Digital Corporation's balance sheet as of December 31, 2017, included 12% bonds having a face amount of $40 millon and a rema ning 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, 2018, Twin Digital retired the bonds at 103 S41.2 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.) View transaction list View journal entry worksheet No Date General Journal Debit Credit July1 ntest expense 2018 Discount on bonds payable Cash 2 July 01 2018 onds payable Loss on early extinguishment Discount on bonds payable