The balance sheet for Lemay Company reports the following information on July 1, 2008.
Long-term liabilities
Bonds payable $1,290,000
Less: Discount on bonds payable
68,000
$1,222,000
Lemay decides to redeem these bonds at 101 after paying semiannual interest. Prepare the journal entry to record the redemption on July 1, 2008. (List multiple debit/credit entries in descending order of amount.)