Three years ago American Insulation Corporation issued 10 percent, $800,000, 10-year bonds for $770,000. Debt issue costs were $3,000. American Insulation exercised its call privilege and retired the bonds for $790,000. 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.
Paper#10778 | Written in 18-Jul-2015Price : $25