q5

Several years ago, Nicole Company issued bonds with a face value of $1,120,000 for $1,005,000. As a result of declining Interest rates, the company has decided to call the bond at a call premlum of 4 percent over par. The bonds have a current book value of $1,094,000. Required: Record the retirement of the bonds, using a discount account. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field