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Record the journal entries for the retirement of the bonds

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Problem

Several years ago, Nicole Company issued bonds with a face value of $1,100,000 for $995,000. 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 $1,076,000. Record the journal entries for the retirement of the bonds, using a discount account.

Reference no: EM131975525

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