On July 1, Aloha Company exercises a call option that requires Aloha to pay $204,000 for its outstanding bonds that have a carrying value of $206,400 and a par value of $200,000. 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. Answer is complete but not entirely correct. No Date 1 July 01 Bonds payable General Journal Premium on bonds payable. Gain on retirement of bonds payable Cash Dobit Credit 200,000 8,000 ( 4,000 204,000