Several years ago, Cyclop Company issued bonds with a face value of $$1,000,000$ for $$1,060,000.$ 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

$$1,025,000.$

Required:

Record the retirement of the bonds, using a premium account.

Note: If no entry is required for a transaction$/$event$,$ select $"$No journal entry required" in the first account field.

Journal entry worksheet

$1$

Record the retirement of the bonds, using a premium account.

Note: Enter debits before credits.