A company previously issued $2,000,000, 10% bonds, receiving a $120,000 premium. On the current year's interest date, after the bond interest was paid and after 40% of the total premium had been amortized, the company purchased the entire bond issue on the open market at 98 and retired it. Prepare the journal entry to record the retirement of these bonds.  

Answer rating: 100% (QA)

Bonds Payable 2000000 Premium of Bonds Payable 12... View the full answer