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Business, 16.03.2020 18:57 angsoccer02
Three years ago American Insulation Corporation issued 10 percent, $910,000, 8-year bonds for $825,000. Debt issue costs were $5,000. American Insulation exercised its call privilege and retired the bonds for $900,000. 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.
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