Ayayai, Inc. had outstanding $5460000 of 11% bonds (interest payable July 31 and January 31)...

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Accounting

Ayayai, Inc. had outstanding $5460000 of 11% bonds (interest payable July 31 and January 31) due in 10 years. On July 1, it issued $9750000 of 10%,15-year bonds (interest payable July 1 and January 1) at 97. A paortion of the proceeds was used to call the 11% bonds (with unamortized discount of $109200) at 102 on August 1. Prepare the journal entries necessary to record issue of the new bonds and the refunding of the bonds.

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