Tyrell Company issued callable bonds with a par value of $40,000. The call option requires Tyrell to pay a call premium of $500 plus par (or a total of $40,500 ) to bondholders to retire the bonds. On July 1 . Tyrell exercises the call option. The call option is exercised after the semiannual interest is paid the day before on June 30 . Record the entry to retire the bonds under each separate situation. 1. The bonds have a carrying value of $31,500. 2. The bonds have a carrying value of $41,000. Journal entry worksheet 2 Record the retirement of the bonds assuming the bonds have a carrying value of $31,500. Note: Enter debits before credits. Tyrell Company issued callable bonds with a par value of $40,000. The call option requires Tyrell to pay a call premium of $500 plus par (or a total of $40,500 ) to bondholders to retire the bonds. On July 1, Tyrell exercises the call option. The call option is exercised after the semiannual interest is paid the day before on June 30 . Record the entry to retire the bonds under each separate situation. 1. The bonds have a carrying value of $31,500. 2. The bonds have a carrying value of $41,000. Journal entry worksheet Record the retirement of the bonds assuming the bonds have a carrying value of $41,000. Note: Enter debits before credits