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Required information

Exercise $9-20($Algo$)$ Record the early retirement of bonds issued at a

premium $($LO$9-6)$

$[$The following information applies to the questions displayed below.$]$

On January $1,2024,$ White Water issues $$490,000$ of $8\%$ bonds, due in $15$ years, with

interest payable semiannually on June $30$ and December $31$ each year. The market

interest rate on the issue date is $7\%$ and the bonds issued at $$535,061.$

Exercise $9-20($Algo$)$ Part $2$

If the market interest rate increases to $9\%$ on December $31,2026,$ it will cost $$454,486$ to retire the

bonds. Record the retirement of the bonds on December $31,2026.($If no entry is required for a

particular transaction$/$event$,$ select $"$No Journal Entry Required" in the first account field. Round your

final answers to the nearest whole dollar.$)$

Journal entry worksheet

$1$

Record the retirement of the bonds

Note: Enter debits before credits.