In fiscal 2017, Ruthilda Inc. (Ruthilda) decided to exercise its option to redeem its outstanding bond issue before the maturity date in 2024.
The bonds had a face value of $6, 100,000 and Ruthilda paid $6, 500,000 to redeem them.
The bonds were originally issued at a premium of $310,000 and at the time the bonds were redeemed, $124,000 of the premium had been amortized.
Required: Prepare the journal entry to record the early retirement of the bonds.