Exercise- Bond Redemption
A company issues $80,000 of 10-year bonds for $86,000. Immediately after the thirteenth semiannual interest payment, the company redeems the bonds for $83,700. The company uses the straight-line method of amortization.
Required:
Prepare the journal entry to record the bond redemption. For a compound transaction, if an amount box does not require an entry, leave it blank or enter "0".