Hayden Co. has outstanding $30 million face amount of 9% bonds that were issued on January 1, 2010, for $30,680,000. The 20-year bonds mature on December 31, 2029, and are callable at 104 (that is, they can be paid off at any time by paying the bondholders 104% of the face amount).

Assume that the bonds are called on December 31, 2016. Record the journal entry to show the effect of the retirement of the bonds. (Hint: Calculate the amount paid to bondholders; determine how much of the bond premium would have been amortized prior to calling the bonds; and then calculate the gain or loss on retirement.)

I tried to solve this problem but I failed. Please help me how to calculate "Premium on bonds payable" and "Loss on early retirement of bonds". Thanks!

b-2. Assume that the bonds are called on December 31, 2016. Record the joumal entry to show the effect or the retirement of the bonds. (Hint: Calculate the amount paid to bondholders, determine how much of the bond premium would have been amortized prior to calling the bonds; and then calculate the gain or loss on retirement.) (If no entry is required for a transaction/event, select"No journal entry required" in the first account field.) Answer is complete but not entirely correct Event General Journal Debit Credit 0 Bonds payable Premium on bonds payable Loss on early retirement of bonds 30,000,000 780,000 420.000 C Cash 31.200,000