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On July 1, 2015, Quonk Inc. issued $1000 in principal of five-year zero coupon bonds. The company received proceeds of $650. On July 1, 2019,

On July 1, 2015, Quonk Inc. issued $1000 in principal of five-year zero coupon bonds. The company received proceeds of $650. On July 1, 2019, the carrying value of the debt was $917. On that day, the company repurchased and retired the debt for $950.

Record the journal entry for the early retirement of the debt.

  1. Cr. Cash -- $950
  2. Cr. Discount on debt payable -- $83
  3. Dr. Loss on early retirement of debt -- $33
  4. Dr. Debt payable -- $1000
  5. Cr. Gain on early retirement of debt -- $50
  6. Cr. Debt payable -- $917
  7. Dr. Loss on early retirement of debt -- $50
  8. Dr. Cash -- $917

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