Dagner Manufacturing retired its $3,500,000 par value 13%, 5-year bonds early on February 28, 2022, for $4,225,000, including accrued interest of $35.000. The carrying value of the bonds at retirement was $3,799,350. What is the gain or loss on early retirement? Prepare the journal entry to record the derecognition of the obligation. What is the gain or loss on early retirement? The on early retirement is gain loss Now prepare the journal entry to record the early retirement of the bonds. The entry to record the early retirement will decrease the bonds payable account by the face value and the premium on bonds payable by the unamortized balance of the premium. The interest expense will increase for the amount of accrued interest. A loss on extinguishment will be recorded as a debit while a gain will be recorded as a credit. Finally, cash will be credited by the price at which the bonds are being retired. (Record debits first, then credits. Exclude explanations from any journal entries.) Account Retirement Date cally the journal entry to record the Bonds Payable Cash Discount on Bonds Payable 0,090 5,500) 5,410) Gain on Early Retirement of Debt Interest Expense Interest Payable rement of the bonds. the bonds payable account by nce of the premium. The interest nent will be recorded as a debit at which the bonds are being ret Intries.) Loss on Early Retirement of Debt Premium on Bonds Payable Retirement Date