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Three years ago American Insulation Corporation issued 10 percent, $950,000, 12-year bonds for $845,000. Debt issue costs were $2, 500. American Insulation exercised its call
Three years ago American Insulation Corporation issued 10 percent, $950,000, 12-year bonds for $845,000. Debt issue costs were $2, 500. American Insulation exercised its call privilege and retired the bonds for $890,000. The corporation uses the straight-line method both to determine interest and to amortize debt issue costs. Required: Prepare the journal entry to record the call of the bonds
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