Magic Mountain retires its $7\%$ bonds having a face amount of $$118,000$ for $$120,000$ before their scheduled maturity. At the time, the bonds have a carrying value of $$113,000.$

Required:

Record the early retirement of the bonds. $($If no entry is required for a particular transaction$/$event$,$ select $"$No Journal Entry Required" in the first account field.$)$

Journal entry worksheet

$1$

Record the early retirement of the bonds.

Note: Enter debits before credits.