Ivanhoe Co. is building a new music arena at a cost of $5,907,000. It received a downpayment of $606,000 from local businesses to support the project, and now needs to borrow $5,301,000 to complete the project. It therefore decides to issue $5,301,000 of 8%, 20-year bonds. These bonds were issued on January 1, 2019, and pay interest annually on each January 1. The bonds yield 10%.
Assume that on July 1, 2022, Ivanhoe Co. retires 40% of the bonds at a cost of $2,091,000 plus accrued interest. Prepare the journal entry to record this retirement. (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.)