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 Corporation redeemed \(\$ 140,000\) face value, \(9 \%\) bonds on April 30,2025 , 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, 2025, has been made and recorded.

b. Oldman, Inc., redeemed \(\$ 170,000\) face value, \(12.5 \%\) bonds on June 30,2025 , 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 30,2025 , has been made and recorded.