1. A $485,000 bond issue on which there is an unamortized discount of $33,000 is redeemed for $472,000. Journalize the redemption of the bonds.

If an amount box does not require an entry, leave it blank.

	Bonds PayableCashDiscount on Bonds PayableGain on Redemption of BondsInterest Expense	- Select -	- Select -
	CashDiscount on Bonds PayableGain on Redemption of BondsLoss on Redemption of BondsPremium on Bonds Payable	- Select -	- Select -
	Bonds PayableDiscount on Bonds PayableGain on Redemption of BondsInterest PayableLoss on Redemption of Bonds	- Select -	- Select -
	Bonds PayableCashGain on Redemption of BondsInterest ExpenseLoss on Redemption of Bonds	- Select -	- Select -

2. Taylor Bank lends Guarantee Company $101,854 on January 1. Guarantee Company signs a $101,854, 8%, 9-month, interest-bearing note. The entry made by Guarantee Company on January 1 to record the proceeds and issuance of the note is

a.

Cash		101,854
Notes Payable			101,854

b.

Notes Payable		101,854
Interest Payable		3,056
Cash			101,854
Interest Expense			3,056

c.

Cash		107,965
Interest Expense			6,111
Notes Payable			101,854

d.

Interest Expense		6,111
Cash		95,743
Notes Payable			101,854