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Okano Medical Lab issued $300,000 in bonds at face value 10 years ago and has paid semiannual interest payments through the years. (a) Assume the

Okano Medical Lab issued $300,000 in bonds at face value 10 years ago and has paid semiannual interest payments through the years.

(a) Assume the bonds are redeemed at face value.
(b) Assume that $25,000 of the bonds are redeemed at 103.
(c) Assume that $25,000 of the bonds are redeemed at 97.

Required:

Prepare the journal entries to record (a), (b), and (c).

CHART OF ACCOUNTSOkano Medical LabGeneral Ledger

ASSETS
101 Cash
122 Accounts Receivable
141 Supplies
181 Office Equipment
LIABILITIES
202 Accounts Payable
219 Wages Payable
252 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 the journal entries to record (a), (b), and (c) on December 31.

(a) Assume the bonds are redeemed at face value.

General Journal Instructions

PAGE 1

GENERAL JOURNAL

DATE ACCOUNT TITLE POST. REF. DEBIT CREDIT

1

2

(b) Assume that $25,000 of the bonds are redeemed at 103.

PAGE 1

GENERAL JOURNAL

DATE ACCOUNT TITLE POST. REF. DEBIT CREDIT

1

2

3

(C) Assume that $25,000 of the bonds are redeemed at 97.

PAGE 1

GENERAL JOURNAL

DATE ACCOUNT TITLE POST. REF. DEBIT CREDIT

1

2

3

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