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Exercise 10-10 (Algo) Bond retirement by call option LO P4 Tyrell Company issued callable bonds with a par value of $38,000. The call option requires Tyrell to pay a call premium of $500 plus par (or a total of $38,500 ) to bondholders to retire the bonds. On July 1 , Tyrell exercises the call option. The call option is exercised after the semiannual interest is paid the day before on June 30 . Record the entry to retire the bonds under each separate situation. 1. The bonds have a carrying value of $30,000. 2. The bonds have a carrying value of $39,000. Journal entry worksheet 2 Record the retirement of the bonds assuming the bonds have a carrying value of $30,000. Note; Enter debuts before credits. Exercise 10-10 (Algo) Bond retirement by call option LO P4 Tyrell Company issued callable bonds with a par value of $38,000. The call option requires Tyrell to pay a call premium of $500 plus par (or a total of $38,500 ) to bondholders to retire the bonds. On July 1 , Tyrell exercises the call option. The call option is exercised after the semiannual interest is paid the day before on June 30 . Record the entry to retire the bonds under each separate situation. 1. The bonds have a carrying value of $30,000. 2. The bonds have a carrying value of $39,000. Journal entry worksheet 2 Record the retirement of the bonds assuming the bonds have a carrying value of $30,000. Note; Enter debuts before credits

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