Prepare the journal entry to record the early retirement

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Reference no: EM131807786

In fiscal 2017, Ruthilda Inc. (Ruthilda) decided to exercise its option to redeem its outstanding bond issue before the maturity date in 2024.

The bonds had a face value of $6, 100,000 and Ruthilda paid $6, 500,000 to redeem them.

The bonds were originally issued at a premium of $310,000 and at the time the bonds were redeemed, $124,000 of the premium had been amortized.

Required: Prepare the journal entry to record the early retirement of the bonds.

Reference no: EM131807786

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