The following are two independent situations

Accounting Nov 08, 2020

The following are two independent situations.

1)Cullumber Corporation redeemed $132,000 face value, 13% bonds on June 30, 2020, at 107. The carrying value of the bonds at the redemption date was $117,500. The bonds pay annual interest, and the interest payment due on June 30, 2020, has been made and recorded.

2)Tastove Inc. redeemed $170,000 face value, 17.50% bonds on June 30, 2020, at 98. The carrying value of the bonds at the redemption date was $171,000. The bonds pay annual interest, and the interest payment due on June 30, 2020, has been made and recorded.

For each independent situation above, how do I prepare the appropriate journal entry for the redemption of the bonds?

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