A company issued $1,000,000 of 30-year, 8% callable bonds on April 1, with interest payable on April 1 and October 1. The fiscal year of the company is the calendar year. The bonds are called at the end of year 3 for 104. What is the entry to record the redemption? (Assume the interest payment has been recorded separately.)

Callable Bonds

Bonds that can be redeemed by the issuer before their maturity date at a predefined call price.

Fiscal Year

A 12-month period used for accounting purposes and preparing financial statements, which may or may not align with the calendar year.

Redemption

The process of paying off or buying back something, such as redeeming a bond at maturity or redeeming shares of stock.