Presented below are two independent situations:

a)

Hillman Corporation redeemed $ 150,000 of its bonds on June 30, 2021, at 102. The amortized cost of the bonds on the retirement date was $137,700. The bonds pay semi-annual interest and the interest payment due on June 30, 2021, has been made and recorded.

b)

Dalton Inc. redeemed $ 200,000 of its bonds at 96 on June 30, 2021. The amortized cost of the bonds on the retirement date was $196,500. The bonds pay semi-annual interest and the interest payment due on June 30, 2021, has been made and recorded.

Instructions

For each of the independent situations, prepare the journal entry to record the retirement or conversion of the bonds.