The situations presented here are independent.

\section*{Instructions}

For each situation prepare the appropriate journal entry for the redemption of the bonds.

(a) Ernst Corporation retired \(\$ 120,000\) face value, \(12 \%\) bonds on June 30, 1998, at 102 . The carrying value of the bonds at the redemption date was \(\$ 107,500\). The bonds pay semiannual interest, and the interest payment due on June 30, 1998, has been made and recorded.

(b) Young, Inc., retired \(\$ 150,000\) face value, \(12.5 \%\) bonds on June 30,1998 , at 98 . The carrying value of the bonds at the redemption date was \(\$ 151,000\). The bonds pay semiannual interest, and the interest payment due on June 30, 1998, has been made and recorded.