The Velvet Corporation has outstanding 400 000 of 8 percent bonds
The Velvet Corporation has outstanding $400,000 of 8 percent bonds callable at 104. On December 1, immediately after the payment of the semiannual interest and the amortization of the bond discount were recorded, the unamortized bond discount equaled $10,500. On that date, $240,000 of the bonds were called and retired. Prepare the journal entry to record the retirement of the bonds on December 1.

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