Several years ago, Ben & John Company issued bonds with a face value of $2,000,000 for $2,090,000.

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Several years ago, Ben & John Company issued bonds with a face value of $2,000,000 for $2,090,000. As a result of declining interest rates, the company has decided to call the bonds at a call premium of 5 percent over par. The bonds have a current book value of $2,020,000. Record the retirement of the bonds, using a premium account.

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Financial Accounting

ISBN: 9781264229734

11th Edition

Authors: Robert Libby, Patricia Libby, Frank Hodge

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