On June $30,2012,$ Sarasota Company issued $12\%$ bonds with a par value of $$740,000$ due in $20$ years. They were issued at $99$ and were callable at $103$ at any date after June $30,2020.$ Because of lower interest rates and a significant change in the company's credit rating, it was decided to call the entire issue on June $30,2021,$ and to issue new bonds. New $8\%$ bonds were sold in the amount of $$1,000,000$ at $102$ ; they mature in $20$ years. Sarasota Company uses straight$-$line amortization. Interest payment dates are December $31$ and June $30.$

$($a$)$ Prepare journal entries to record the redemption of the old issue and the sale of the new issue on June $30,2021.$

$($b$)$ Prepare the entry required on December $31,2021,$ to record the payment of the first $6$ months' interest and the amortization of premium on the$-$bonds.

$($Round answers to $0$ decimal places, e$.$g$.38,548.$ If no entry is required, select $"$No Entry" for the account titles and enter $0$ for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.$)$

No$.$ Date

Account Titles and Explanation