Raysport Inc.sells $1,000,000 of three-year bonds on January 1,2017,for $980,000.The coupon rate on the bonds is 6% payable on July 1 and January 1.Transaction costs directly attributable to issuing the bonds total $20,000.Raysport Inc's fiscal year-end is December 31.The effective semi-annual rate is 3.6510%.On October 1,2018,Raysport Inc.repurchases the bonds on the open market for total consideration of $980,000 cash.Raysport uses the effective interest method.
Required: Record the journal entries for derecognition at October 1,2018.

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The Answer of Raysport Inc.sells $1,000,000 of three-year bonds on January 1,2017,for $980,000.The coupon rate on the bonds is 6% payable on July 1 and January 1.Transaction costs directly attributable to issuing the bonds total $20,000.Raysport Inc's fiscal year-end is December 31.The effective semi-annual rate is 3.6510%.On October 1,2018,Raysport Inc.repurchases the bonds on the open market for total consideration of $980,000 cash.Raysport uses the effective interest method.
Required: Record the journal entries for derecognition at October 1,2018.