Miller & Miller sold bonds at a premium for $525,000 (premium of $25,000) eight years ago.
a) The corporation redeems $50,000 of this issue at 95. The unamortized premium is $500
b) The corporation redeems $75,000 of this issue at 103. The unamortized premium is $750.
I’m needing to prepare the journal entries to record the redemption in a) and b).
I have the account titles correct:
a) Bonds Payable with a Debit of $50,000
Premium on Bonds Payable
Gain on Bonds Redeemed
Cash
b) Bonds Payable ,000 debit
Premium on Bonds Payable
Loss on Bonds Redeemed
Cash
I think I’m multiplying the wrong amounts to get the other answers
Not sure what I’m doing wrong.
Like I say I do have the account titles correct and the Bonds Payable amounts are correct.
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