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Three years ago American Insulation Corporation issued 10 percent, $900,000, 10-year bonds for $866,250. Debt issue costs were $3,000.

Three years ago American Insulation Corporation issued 10 percent, $900,000, 10-year bonds for $866,250. Debt issue costs were $3,000. American Insulation exercised its call privilege and retired the bonds for $888,750. The corporation uses the straight-line method both to determine interest and to amortize debt issue costs

Prepare the Journal Entry to record the call of the bonds
Bonds Payable....
Loss on Early extinguishment...
Discount on Bonds...
Cash...
Debt issue costs...

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Three years ago American Insulation Corporation issued 10 percent, $900,000, 10­year bonds for $866,250. Debt issue costs were $3,000. American Insulation exercised its call privilege and retired...

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