Three years ago American Insulation Corporation issued 10 percent, $900,000, 12-year bonds for $820,000. American Insulation exercised its call privilege and retired the bonds for $890,000. The corporation uses the straight-line method to determine interest. Required: Prepare the journal entry to record the call of the bonds

Return to question Three years ago American Insulation Corporation issued 10 percent, $900,000, 12-year bonds for $820,000. American Insulation exercised its call privilege and retired the bonds for $890,000. The corporation uses the straight-line method to determine interest points Required: Prepare the journal entry to record the call of the bonds. required" in the first account field.) Is required for a transaction/event, select "No Journal entry 8 Answer is complete but not entirely correct. Debit Credit 1 1 Bonds payable Bonds payable o 900,000 O Loss on early extinguishment Discount on bonds payable | Cash 890,000 O