The following situations are independent of each other.
Instructions
For each situation, prepare the appropriate journal entry for the redemption of the bonds.
a. Mikhail redeemed $140,000 face value, 9% bonds on April 30, 2022, at 101. The carrying value of the bonds at the redemption date was $126,500. The bonds pay annual interest, and the interest payment due on April 30, 2022, has been made and recorded.
b. Oldman, Inc., redeemed $170,000 face value, 12.5% bonds on June 30, 2022, at 98. The carrying value of the bonds at the redemption date was $184,000. The bonds pay annual interest, and the interest payment due on June 30, 2022, has been made and recorded.
