On April 1, 2019, Daves Deli issued $70,000 of its 9 percent bonds, maturing 10 years later. Interest is payable semiannually on April 1 and October 1. The issue price was 94.0. Daves has decided to retire the bonds on August 1, 2022, three years and four months after the bonds were initially issued. The bonds were repurchased at 99. After recording the accrued interest expense payable through August 1, 2022, the balance in the Discount on Bonds Payable account is $2,800. Prepare the general journal entry to record the repurchase and retirement of the bonds.

Journal entry worksheet

• Record the entry to repurchase and retire bonds at 99.

Note: Enter debits before credits.

Date	General Journal	Debit	Credit
Aug 01, 2022	Bonds payable	70,000
	Loss on early retirement of bonds
	Cash
	Discount on bonds payable		2,800