Star Company issued $40,000 face value bonds with a call option that requires Star to pay a premium of $5,000 plus par to bondholders if the bonds are retired early on November 1st Star exercises the call option after the semiannual interest is paid the day before on October 31st Record the entry to retire the bonds if the carrying value is $35,000 Date GENERAL JOURNAL Account Titles and Explanation Debit Credit Assume the same situation above, except the carrying value of the bonds is $45,000 when the call option is exercised GENERAL JOURNAL Account Titles and Explanation Date Debit Credit