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. Required: Prepare the journal entry to record the call of the bonds.

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A: 1.

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A: Note: Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the question…

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Q: Larkspur, Inc. had outstanding $5,540,000 of 11% bonds (interest payable July 31 and January 31) due…

A: We shall answer the first question since the exact question wasn't specified. Please resubmit a new…

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