14.10

Three years ago American Insulation Corporation issued 10 percent, $830,000, 10-year bonds for $785,000. American Insulation exercised its call privilege and retired the bonds for $820,000. The corporation uses the straight-line method to determine interest.

Required:

Prepare the journal entry to record the call of the bonds.. (If no entry is required, write No journal entry required in the first account field.)

Journal entry worksheet.

Record the call of the bonds.

Event	General Journal	Debit	Credit
1