Assume that in 2000, General Mills issued $100,000 of bonds at face value. Ten years later, in 2010, the company retired the bonds early. At the time, the bond price was 103, so General Mills made a payment of $103,000.
- dr Bonds Payable (-L) 100,000
- dr Loss on Bond Retirement (+E, -SE) 3,000
- cr Cash (-A) 103,000