On June $30,2016,$ Martinez Limited issued $13\mathrm{.}75\%$ bonds with a par value of $$806,000$ due in $20$ years. They were issued at $96$ and were callable at $102$ at any date after June $30,2023.$

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 $30,2023,$ and to issue new bonds. New $8\%$ bonds were sold in the amount of $$1$ million at $104$ ; they mature in $20$ years. The compan follows ASPE and uses straight$-$line amortization. The interest payment dates are December $31$ and June $30$ of each year.

$($a$)$

Prepare journal entries to record the retirement of the old issue and the sale of the new issue on June $30,2023.($Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select $"$No Entry" for the account titles and enter $0$ for the amounts. List all debit entries before credit entries.$)$

Date

Account Titles and Explanation

Debit

Credit

June $30,$

$2023$

Prepare journal entries to record the retirement of the old issue and the sale of the new issue on June $30,2023.($Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select $"$No Entry" for the account titles and enter $0$ for the amounts. List all debit entries before credit entries.$)$

Date Account Titles and Explanation Credit

June Debit

$($To record redemption of bonds payable$)$

June $30,$

$2023($To record issuance of new bonds$)$