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Several years ago, Cyclop Company issued bonds with a face value of $1,800,000 for $10,845,000. As a result of declining interest rates, the company has

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Several years ago, Cyclop Company issued bonds with a face value of $1,800,000 for $10,845,000. As a result of declining interest rates, the company has decided to call the bonds at a call premium of 5 percent over par. The bonds have a current book value of $1,815,000. Required: Record the retirement of the bonds, using a premium account. Record the retirement of the bonds, using a premium account

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