Ayayai, Inc. had outstanding $6,510,000 of 10% bonds (interest payable July 31 and January 31) due in 10 years. On July 1, it issued $8,620,000 of 9%, 15-year bonds (interest payable July 1 and January 1) at 98. A portion of the proceeds was used to call the 10% bonds (with unamortized discount of $260,400) at 104 on August 1. Prepare the journal entries necessary to record issue of the new bonds and the refunding of the bonds.