A company retired $80 million of its 10% bonds at 104 ($83.2 million) before their scheduled maturity. At the time, the bonds had a remaining discount of $2 million. Prepare the journal entry to record the redemption of the bonds. (Enter your answers in millions rounded to 1 decimal place (i. e., 5,500,000 should be entered as 5.5). If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

Dr Bonds payable 80.0

Dr Loss on early extinguishment 5.2

Cr Discount on bonds payable 2.0

Cr Cash 83.2

Explanation:

Preparation of the journal entry to record the redemptionnof the bonds

Based on the information given we were told that the company retired the amount of $80 million with a 10% bonds at 104 ($83.2 million) and as well had a remaining discount of $2 million, which means that the transaction will be recorded as:

Dr Bonds payable 80.0

Dr Loss on early extinguishment 5.2

[(83.2+2.0)-80.0]

Cr Discount on bonds payable 2.0

Cr Cash 83.2

definitely a

answerattainable;