Three years ago American Insulation Corporation issued 10 percent, $950,000, 12-year bonds for $845,000. 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. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

• Record the call of the bonds.

Note: Enter debits before credits.

Event	General Journal	Debit	Credit
1	Bonds payable	950,000
	Loss on early extinguishment