On July $1,$ Aloha Company exercises a call option that requires Aloha to pay $$408,000$ for its outstanding bonds that have a carrying value of $$411,200$ and a par value of $$400,000.$ The company exercises the call option after the semiannual interest is paid the day before on June $30.$

Record the entry to retire the bonds.

Journal entry worksheet

$1$

Record the retirement of bonds before maturity.

Note: Enter debits before credits.

$\backslash$table$[[$Date$,$General Journal,Debit,Credit$],[$July $01],[,,,],[,,,],[,,,],[,,,],[,,,]]$