recording the early retirement of a bond issued at a premium (with premium account) (ap10-13) several years ago, cyclop company issued bonds with a face value of $1,000,000 for $1,045,000. as a result of declining interest rates, the company has decided to call the bonds at a call premium of 5 percent over par. the bonds have a current book value of $1,010,000. record the retirement of the bonds, using a premium account.