Exercise 14.10 Bond retirement by call option LO P4 4.54 points Tyrell Company issued collable bonds with a par value of $12,000. The call option requires Tyrell to pay a call premium of $5 por for a total of $12,500) to bondholders to retire the bonds. On July 1, Tyrell exercises the call option. The call option is exe after the semiannual interest is paid the day before on June 30. Record the entry to retire the bonds under each separate sit 1. The bonds have a carrying value of $10,500, 2. The bonds have a carrying value of $13,000. Answer is complete but not entirely correct. No Date Credit July 01 General Journal Bonds payable Loss on Retirement of Bonds Discount on bonds payable Cash Debit 40,000 9.000 8,500 40.500 X July 01 Bonds payable Premium on bonds payable Cash Gain on Retirement of Bonds 40,000 1,000 500