On June 1, LeMond Company recalls bonds with a face value of $200,000 and a current book

Question:

On June 1, LeMond Company recalls bonds with a of $200,000 and a current book value of $190,000.
LeMond pays $192,000 to retire the bonds. Prepare the journal entry to record the retirement of the bonds.

Face Value
Face value is a financial term used to describe the nominal or dollar value of a security, as stated by its issuer. For stocks, the face value is the original cost of the stock, as listed on the certificate. For bonds, it is the amount paid to the...