Three years ago American Insulation Corporation issued 10 percent, $860,000, 8-year bonds for $800,000. American Insulation exercised its call privilege and retired the bonds for $850,000. The corporation uses the straight-line method to determine interest. Required:

Prepare the journal entry to record the call of the bonds. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)