Medina Optical Supply sold bonds at a discount for $420,000 (discount of $20,000) eight years ago.

(a)	The corporation redeems $25,000 of this issue at 94. The unamortized discount is $250.
(b)	The corporation redeems $30,000 of this issue at 101. The unamortized discount is $300.

Required:

Prepare journal entries to record the redemption in (a) and (b).

CHART OF ACCOUNTSMedina OpticalGeneral Ledger

	ASSETS
101	Cash
122	Accounts Receivable
141	Supplies
181	Office Equipment

	LIABILITIES
202	Accounts Payable
219	Wages Payable
252	Bonds Payable
253	Discount on Bonds Payable

	EQUITY
321	Common Stock
322	Paid-In Capital in Excess of Par-Common Stock
329	Paid-In Capital from Sale of Treasury Stock
331	Retained Earnings
333	Cash Dividends

	REVENUE
401	Sales
417	Gain on Bonds Redeemed

	EXPENSES
511	Wages Expense
512	Advertising Expense
513	Bank Credit Card Expense
514	Store Supplies Expense
515	Travel and Entertainment Expense
549	Miscellaneous Expense
554	Loss on Bonds Redeemed

Prepare journal entries to record the redemption in (a) and (b) on December 31.

(a) The corporation redeems $25,000 of this issue at 94. The unamortized discount is $250.

General Journal Instructions

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GENERAL JOURNAL

	DATE	ACCOUNT TITLE	POST. REF.	DEBIT	CREDIT
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(b) The corporation redeems $30,000 of this issue at 101. The unamortized discount is $300.

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GENERAL JOURNAL

	DATE	ACCOUNT TITLE	POST. REF.	DEBIT	CREDIT
1
2
3
4