The situations presented here are independent of each other}

\section*{Instructions}

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

(a) Mikhail Corporation redeemed \(\$ 140,000\) face value, \(9 \%\) bonds on April 30, 2017, at 101. The carrying value of the bonds at the redemption date was \(\$ 126,500\). The bonds pay annual interest, and the interest payment due on April 30, 2017, has been made and recorded.

(b) Oldman, Inc., redeemed \(\$ 170,000\) face value, \(12.5 \%\) bonds on June 30,2017 , at 98 . The carrying value of the bonds at the redemption date was \(\$ 184,000\). The bonds pay annual interest, and the interest payment due on June 30, 2017, has been made and recorded.