A $800,000 bond issue on which there is an unamortized discount of $28,417 is redeemed for $763,867. Journalize the redemption of the bonds.
What is not right to me is that:
debit-- Bonds Payable 800,000
credit--Discount on Bonds Payable 28,417
Cash 763,867
Now you see there is a $7716 difference but I am at a lose to is it a gain or a loss, which I think is a lose but where do I put it. The loss goes with the debit but it makes it alot more than the credits.