The situations presented here are independent of each other.

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

(a) Thunder Corporation retired $130,000 face value, 12% bonds on June 30, 2007, at 102. The carrying value of the bonds at the redemption date was $122,500. The bonds Exercises 513 Journalize unearned subscription revenue.

(SO 3)

Prepare journal entries for issuance of bonds and payment of accrual of interest.

(SO 5)

Prepare journal entries for issuance of bonds and payment and accrual of interest.

(SO 5)

Prepare entries for issue of bonds.

(SO 5)

Prepare journal entries to record issuance of bonds, payment of interest, and redemption at maturity.

(SO 5, 6)

Prepare journal entries for redemption of bonds.

(SO 6)

514 CHAPTER 10 Reporting and Analyzing Liabilities pay annual interest, and the interest payment due on June 30, 2007, has been made and recorded.

(b) Lightning, Inc., retired $180,000 face value, 12.5% bonds on June 30, 2007, 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, 2007, has been made and recorded.

Prepare liabilities section of