Computation of unamortised bond premium

Reference no: EM1310859

Computation of unamortised bond premium, Gain and Loss on bond retirement.

A company previously issued $2,000,000, 10% bonds, receiving a $120,000 premium. On the current year's interest date, after the bond interest was paid and after 40% of the total premium had been amortized, the company purchased the entire bond issue on the open market at 98 and retired it. Prepare the journal entry to record the retirement of these bonds.

Reference no: EM1310859

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