Answer:
bonds payable       1,000,000 debit
loss on redemption    20,000 debit
         discount on bonds               10,000 credit
         cash                                  1,010,000 credit
--to record tyhe call of the bonds on September 30th--
Explanation:
par value of the bonds:    1,000,000
call premium:                   <u>       10,000</u>
total cash disbusements:  1,010,000
carrying value                      990,000
loss on redemption               20,000
<u>Notice: </u>It is a loss as we are paying more than the aliability is worth
discount/premium:
face value     1,000,000
carrying value 990,000
discount             10,000
We write off the bonds account: bond payable and bon discount
we debit the loss and credit hthe cash disbursments