Prepare the journal entry to record the call of the bonds

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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

Reference no: EM13326992

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