Mutschelknaus Manufacturing sold bonds at a discount for $290,000 (discount of $10,000) seven years ago. (a) The

Question:

Mutschelknaus Manufacturing sold bonds at a discount for $290,000 (discount of $10,000) seven years ago.

(a) The corporation redeems $25,000 of this issue at 97. The unamortized discount is $350.

(b) The corporation redeems $30,000 of this issue at 99. The unamortized discount is $450. Prepare journal entries to record the redemption in (a) and (b).

Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...