Question: The company has outstanding bonds payable with a total face value of $100,000. On July 1, the company redeemed the bonds by purchasing them on

The company has outstanding bonds payable with a total face value of $100,000. On July 1, the company redeemed the bonds by purchasing them on the open market for a total of $102,700. Make the necessary journal entry on the issuer’s books to record the redemption of the bonds assuming that
(1) The bonds have an unamortized discount of $2,000 and
(2) The bonds have an unamortized premium of $2,000.

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