Early Retirement of Bonds Interest is payable semiannually Elston Company issued $500,000 of eight percent 20-year bonds at 106 on January 1, 2010. on July 1 and January 1. Through January 1, 2016. Elston amortized $5,000 of the bond premium. On January 1,2016, Elston retired the bonds at 103 after making the interest payment on that date). Prepare the journal entry to record the bond retirement on January 1, 2016. General Journal Credit Debit Description Date s 500,000 v s Jan.1 Bonds payable Premium on Bonds payable Gain on Bond Retirement Cash To retire bonds and record gain on bond retirement

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