6 Exercise 10-8A Journal entries for callable bonds LO 10-3 1.25 points Nivan Co. issued $500,000 of 5 percent, 10-year, callable bonds on January 1, Year 1, at their face value. The call premium was 3 percent (bonds are callable at 103). Interest was payable annually on December 31. The bonds were called on December 31, Year 5. eBook Required Prepare the journal entries to record the bond issue on January 1, Year 1, and the bond redemption on December 31, Year 5. Entries for accrual and payment of interest are not required. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) Hint Journal entry worksheet Record the bond issue on January 1, Year 1. Note: Enter debits before credits. General Journal Debit Credit Date Jan 01 Record entry Clear entry View general Journal Journal entry worksheet Record the bond redemption on December 31, Year 5. Note: Enter debits before credits. Date General Journal Debit Credit Dec 31 Record entry Clear entry View general Journal