a. b Bonds Payable Problems: A $500,000 Bond is redeemed at 97 when the carrying amount of the bond was $495,000 When the bond was issued, was it issued at a premium or a discount circle one) How do you know this? c. If so, how much was the balance of the premium or discount at the time of redemption? d. When the bond is redeemed, how much cash did they have to pay the bondholders? (show your calculation) e. What is the gain or loss on the redemption of the bonds? f. What is the general journal entry for the bond redemption? Dat Account/description Debit Credit A $500,000 bond was redeemed at 99 when the carrying amount of the bond was 5492,000. a. When the bond was issued, was it issued at a premium or a discount? (circle one) b. How do you know this? c. If so, how much was the balance of the premium or discount at the time of redemption? d. When the bond is redeemed, how much cash did they have to pay the bondholders? (show your calculation) What is the gain or loss on the redemption of the bonds? f. What is the general journal entry for the bond redemption? e. Date Account/description Debit Credit A $500,000 bond was redeemed at 98 when the carrying amount of the bond was $503,000 a. When the bond was issued, was it issued at a premium or a discount? (circle one) b. How do you know this? If so, how much was the balance of the premium or discount at the time of redemption? d. When the bond is redeemed, how much cash did they have to pay the bondholders? (show your calculation) e. What is the gain or loss on the redemption of the bonds? F. What is the general journal entry for the bond redemption? Date Credit Account/description Debit On January 1, ABC Enterprises issued 12% bonds with a face value of $500,000. The bonds were sold for $495,000. The bonds pay interest semiannually Oune 30 and Dec 31) and they mature in 15 years. ABC Enterprises amortizes the bond discount using the straight line method. What is the entry for the issuance of the bonds? Date Account/description Debit Credit What is the entry for the June 30 interest payment and bond discount amortization? Date Account/description Debit Credit What is the entry for the December 31 Interest payment and bond discount amortization? Date Account/description Debit Credit How much interest did ABC Enterprises pay for the year