Please show all work and explain how you got the answer Than

Please show all work and explain how you got the answer. Thank you kindly.

Three years ago American Insulation Corporation issued 10 percent, $980,000, 10-year bonds for $860,000. American Insulation exercised its call privilege and retired the bonds for $920,000. The corporation uses the straight-line method to determine interest. Required Prepare the journal entry to record the call of the bonds. (If no entry is required for a transaction/event, select \"No journal entry required\" in the first account field.) View transaction list Journal entry worksheet Record the call of the bonds. Note: Enter debits before credits. Event General Journal Debit Credit s payable ss on early extinguishment Discount on bonds payable Cash Record entry Clear entry View general journal

Solution

Journal entry :

Date	accounts & explanation	debit	credit
	Bonds payable	980000
	Loss on early extinguishment	24000
	Discount on bonds payable		84000
	Cash		920000