The balance sheet of indian river electronics corporation as of december 31, 2010, included 12.25% bonds having a face amount of $90 million. the bonds had been issued in 2003 and had a remaining discount of $3 million at december 31, 2010. on january 1, 2011, indian river electronics called the bonds before their scheduled maturity at the call price of 102.required: prepare the journal entry by indian river electronics to record the redemption of the bonds at january 1, 2011. (enter your answers in dollars not in millions. omit the "$" sign in your response.)cr. dr. bonds payable $90,000,000loss on early extinguishment $ on bonds payable $3,000,000i can't figure out the loss and cash amounts. if someone could that'd be great!

Credit cash:

= Face amount of bonds × 1.02

= $90 million × 1.02

= $91,800,000

Note:

When bonds are quoted, they are stated n terms of a percentage of the face amount. A $1,000 bond with a call price of 101 will sell for $1,010. $1,000*1.01 = $1,010

So, the credit cash should be $91,800,000

Discount = $3 million

So,

The loss on early extinguishment:

= Cash + Discount - Bonds Payable

= $91,800,000  + $3,000,000 - $90,000,000

= $4,800,000

Therefore, the journal entry is as follows:

Bonds Payable A/c                           Dr. $90 million

Loss on Early Extinguishment A/c   Dr. $4.8 million

To Cash                                                                     $91.8 million

To Discount                                                               $3 million

(To record the redemption of the bonds at January 1, 2011)

answer; /// the use of a bank credit card to make purchase;