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Question
Three years ago American Insulation Corporation issued 10 percent, $870,000, 10-year bonds for $805,000. American Insulation exercised its call privilege and retired the bonds for $860,000. 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.)
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