d issue on which there is an unamortized discountpremium of

d issue on which there is an unamortized discount/premium of $35,000 is redeemed for A $500,000 bon $475,000. Required Journalize the redemption of the bonds. Refer to the Chart of Accounts for exact wording of account titles

Solution

General Journal Debit Credit Bonds Payable $500,000 Loss on Redemption of Bonds $10,000 Discount on Bonds Payable $35,000 Cash $475,000