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On July 1, Aloha Co

Accounting

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On July 1, Aloha Co. exercises a call option that requires Aloha to pay $244,800 for its outstanding bonds that have a carrying value of $247,800 and par value of $240,000. The company exercises the call option after the semiannual interest is paid the day before on June 30.

Record the entry to retire the bonds.

 Record the retirement of bonds before maturity.