Your answer is partially correct. Try again. nt 2 14-4 14-7 Indigo, Inc. had outstanding $6,490,000 of 1196 bonds (interest payable July 31 and January 31) due in 10 years. On July 1, it issued $8,840,000 of 10%, 15-year bonds (interest payable July 1 and January 1) at 99, A portion of the proceeds was used to call the 11% bonds (with unamortized discount of $194,700) at 103 on August 1. 3 Prepare the journal entries necessary to record issue of the new bonds and the refunding of 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) s by Study Date Account Titles and Explanation Debit Credit July 1 cash 8,751,600 Discount on Bonds Payable 88,4 Bonds Payable 8,840,000 (To record issuance of 10% bonds) August 1 Bonds Payable 6,490,000 Loss on Redemption of Bonds 713,900 Cash 6,684,700 Discount on Bonds Payable 713,900 ment IPrivay Polisy All Rights Reserved. A Division of Jchn Wilev &Sona In Version 4.24.12.1