Question 32 (of 33) 32 100 points value 10.00 points Three years ago on January 1, 2010, American Insulation Company issued 10%, $800,000, 10-year bonds for $770,000. Debt transaction costs were $3,000. American Insulation exercised its call privilege on December, 31, 2012, and retired the bonds for $790,000. Interest was paid semiannually. Debt transaction costs were amortized over the tenure of the bonds using the effective interest method. The effective interest rate per semiannual period was 5.34%. Required: Prepare the journal entry to record the call of the bonds. (Do not round intermediate calculatons.) General Journal Debit Credit Bonds payable Loss on early extinguishment 800,000 Cash 790,000 Discount on bonds payable References Worksheet Learning Objective: 14-06 Record the early extinguishment of debt and its conversion into equity securities hovo Question 32 (of 33) 32 100 points value 10.00 points Three years ago on January 1, 2010, American Insulation Company issued 10%, $800,000, 10-year bonds for $770,000. Debt transaction costs were $3,000. American Insulation exercised its call privilege on December, 31, 2012, and retired the bonds for $790,000. Interest was paid semiannually. Debt transaction costs were amortized over the tenure of the bonds using the effective interest method. The effective interest rate per semiannual period was 5.34%. Required: Prepare the journal entry to record the call of the bonds. (Do not round intermediate calculatons.) General Journal Debit Credit Bonds payable Loss on early extinguishment 800,000 Cash 790,000 Discount on bonds payable References Worksheet Learning Objective: 14-06 Record the early extinguishment of debt and its conversion into equity securities hovo