Answer: Please see expalantion coumn for answer
Explanation:
1) To record issuance of bonds
Date            Account Title            Debit                        Credit
July 1        Cash                         $9,457,500
Discount on bond payable          $292,500
Bond payable                                                               $9,750,000
 Calculation:
Cash  =$9,750,000 x 97% = $9,457, 500
Discount = $9, 750,000 - $9,457,500= $292,500
2)To record retirement of 11% bonds
Date            Account Title                        Debit                        Credit
August 1st     Bond payable             $5,460,000
Loss on Redemption of bonds        $218,400
Cash                                                                                            $5,569,200 
Discount on Bonds payable                                                           $109,200
Calculation:
Cash =$5,460,000  x 102%  = $5,569,200
Loss on Redemption of bonds = Cash + Discount on bonds payable - Bonds payable =  $5,569,200 + $109,200) - $5,460,000=  $218,400