Record retirement of bonds without using a discount account

Reference no: EM131975531

Problem

Several years ago, Nicole Company issued bonds with a face value of $1,190,000 for $1,040,000. As a result of declining interest rates, the company has decided to call the bond at a call premium of 5 percent over par. The bonds have a current book value of $1,157,000. Record the retirement of the bonds without using a discount account.

Reference no: EM131975531

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