E$13\mathrm{.}15($LO $1,2)($Entries for Redemption and Issuance of Bonds$)$ Day Company had bonds outstanding with a maturity value of $$300,000.$ On April $30,2025,$ when these bonds had an unamortized discount of $$10,000,$ they were called in at $104.$ To pay for these bonds, Day had issued other bonds a month earlier bearing a lower interest rate. The newly issued bonds had a life of $10$ years. The new bonds were issued at $103($face value $$300,000).$

Instructions

Ignoring interest, compute the gain or loss and prepare the two entries record this refunding transaction.

$($AICPA adapted$)$