CHAPTER 14 (13.)

Two years ago American Insulation Corporation issued 10 percent, $990,000, 8-year bonds for $865,000. American Insulation exercised its call privilege and retired the bonds for $930,000. 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 for a transaction/event, select "No journal entry required" in the first account field.)

THE ANSWERS I GOT WRONG ARE BELOW

Answer is not complete. No Event Credit General Journal Bonds payable Loss on early extinguishment Discount on bonds payable Cash Debit 990,000 93,750 930,000