Question: PLEASE HELP WITH THE 2 MISSING JOURNAL ENTRIES Three years ago American Insulation Corporation issued 10 percent, $890,000, 10-year bonds for $815,000. Debt issue costs

PLEASE HELP WITH THE 2 MISSING JOURNAL ENTRIES

Three years ago American Insulation Corporation issued 10 percent, $890,000, 10-year bonds for $815,000. Debt issue costs were $9,000. American Insulation exercised its call privilege and retired the bonds for $880,000. The corporation uses the straight-line method both to determine interest and to amortize debt issue costs.

Required:

Prepare the journal entry to record the call of the bonds. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

Required:
1.Record the call of the bonds

No	Event	General Journal	Credit
1	1	Loss on early extinguishment
		Bonds payable
		Cash	880,000
		Discount on bonds payable	52,500

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