Prepare the journal entry to record the call of the bonds

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Reference no: EM13863956

Three years ago American Insulation Corporation issued 10 percent, $920,000, 9-year bonds for $830,000. Debt issue costs were $3,000. American Insulation exercised its call privilege and retired the bonds for $910,000. 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. (If no journal entry is required for an event, select "No journal entry required" in the first account field.)

Reference no: EM13863956

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