QS 10-9 Bond retirement by call option LO P4 On July 1, Advocate Co. exercises an $4,000 call option (plus par value) on its outstanding bonds that have a carrying value of $207,000 and 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. Record the retirement of bonds before maturity.