focus decides to redeem these bonds at 101 after paying semiannual interest prepare 581462

The balance sheet for Focus Consulting reports the following information on July 1, 2012.

Long term liabilities

Bonds payable

$1,000,000

$940,000

Less: Discount on bonds payable

60,000

$940,000

Focus decides to redeem these bonds at 101 after paying semiannual interest. Prepare the journal entry to record the redemption on July 1, 2012.