Question 4. Mark 2.5 At the end of the 6th year, the bonds were redeemed at 102: -Write the Journal Entry Premium on Bonds Payable Balance: Amortization: Account balance: Bonds Payable Balance Redemption Price Carrying Value Gain (Redemption < CV) $24,924.60 * 6 years = $149,547.60 $249,246-149,547.60 = $99,698.40 4,000,000 4,000,000 *102% 4,000,000+ 99,698.40 = $4,080,000.00 = 4,099,698.40 $19,698.4 Question 5. Mark 2.5 At the end of the 6th year, the bonds were redeemed at 99:- Write the Journal Entry Premium on Bonds Payable Balance: Amortization: Account balance: $229,418-137,650.80 $22,941.80 6 years = $137,650.80 = $91,767.20 Bonds Payable Balance 4,000,000 Redemption Price Carrying Value Loss (Redemption > CV) 4,000,000* 98% = $3,920,000.00 4,000,000 - 91,767.20 = 3,908,232.80 $11,767.20