Early Retirement of Bonds

Eaton Company issued $$600,000$ of eight percent, $20$year bonds at $106$ on January $1,2016.$ Interest is payable semiannually on July $1$ and January $1.$ Through January $1,2022,$ Eaton amortized $$5,000$ of the bond premium. On January $1,2022,$ Eaton retired the bonds at $103($after making the interest payment on that date$).$ Prepare the journal entry to record the bond retirement on January $1,2022.$

General Journal

Date Description Debit Credit

Jan$\mathrm{.}1$ Bonds Payable Answer

$0$

Answer

$0$

Answer

Answer

$0$

Answer

$0$

Answer

Answer

$0$

Answer

$0$

Cash Answer

$0$

Answer

$0$

To retire bonds and record gain on bond retirement.