To take advantage of lower interest rates and to finance the redemption of 6% Bonds, on Sept.1st 2016, ABC issued 5% Bonds in the face value of $100,000 to yield 6%. The maturity period of these 5% Bonds is 10 years and interest is paid semiannually on 1st Jan and 30th June.The proceeds from the issue of 5% Bonds are used to redeem 6% Bonds Payable @ 101 on Sept.1st 2016. Please assist with creating the proper journal entries for this interaction. Please show all detailed calculations. The journals should appear as:

1) Bonds Payable (6%)

Loss on Redemption of Bonds

Cash

Discount on Bonds Payable

2) Cash

Discount on Bonds Payable

Bonds Payable

3) Interest Expense

Cash