Answer:
Bonds Payable (Dr.) 90,000,000
Loss on early extinguishment (Dr.) 4,800,000
Discount on B&P (Cr.) 3,000,000
Cash (Cr.) 91,800,000
Explanation:
The journal entry will be required to record the redemption of bonds of Indian Ricer Electronics Corporation.
Bonds Face Value = $90,000,000
Premium (102 - 100) = $90,000,000 * 2/100 = $1,800,000
Total Cash Paid = $91,800,000
Loss on early extinguishment = $91,800,000 + $300,000 - $90,000,000
= $4,800,000
