Several years ago, Nicole Company issued bonds with a face value of $1,050,000 for $970,000. As a result of declining interest rates, the company has decided to call the bond at a call premium of 5 percent over par. The bonds have a current book value of $1,031,000.

Required:

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

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

Record the retirement of the bonds.

Note: Enter debits before credits.

Transaction	General Journal	Debit	Credit
1