GKD Ltd$.$ sold $$7,960,000$ of $12\%$ bonds, which were dated March $1,2023,$ on June $1,2023.$ The bonds paid interest on September $1$ and March $1$ of each year. The bonds' maturity date was March $1,2033,$ and the bonds were issued to yield $14\%.$ GKD$\text{'}$s fiscal year$-$end was February $28,$ and the company followed IFRS. On June $1,2024,$ GKD bought back $$3,960,000$ worth of bonds for $$3,860,000$ plus accrued interest.$$ Prepare the journal entry for the accrued interest on the portion of the bonds redeemed. before credit entry.$)$ Account Titles and Explanation

Debit

Credit

June $1,2024$

Interest Payable

Loss on Redemption of Bonds

Cash