On July $1,$ Aloha Company exercises a call option that requires Aloha to pay $$244,800$ for its outstanding bonds that have a carrying value of $$248,200$ and a par value of $$240,000.$ The company exercises the call option after the semiannual interest is paid the day before on June $30.$

$112$

points

Record the entry to retire the bonds.

Journal entry worksheet

$1$

Record the retirement of bonds before maturity.

References

Note: Enter debits before credits.

$\backslash$table$[[$Date$,$General Journal,Debit,Credit$],[$July $01,$Bonds payable,,$],[,$Bond interest expense,,$],[,$Premium on bonds payable,$8,200,],[,$Cash,$244,800,],[,,,],[,,,]]$