Discuss the below:
REDEMPTION OF BONDS ISSUED AT FACE VALUE
Q: Levesque Lumber Co. issued $800,000 in bonds at face value 10 years ago and has paid semiannual interest payments through the years.
(a) Assume the bonds are redeemed at face value.
(b) Assume that $80,000 of the bonds are redeemed at 104.
(c) Assume that $80,000 of the bonds are redeemed at 96.
Prepare journal entries to record (a), (b), and (c).