Richards Corporation issued $900,000 of 10-year bonds at a discount. Prior to maturity, when the bonds had a carrying value of $889,200, Richards redeemed the bonds at 101. Prepare the entry to record the bond redemption. Bonds Payable 900,000 Loss on Redemption 19,800 Discount on Bonds Payable 10,800 Cash 909,000 Cash paid to redeem: $900,000 X 1.01 = $909,000 Unamortized Discount: ($900,000 face value - $889,200 carrying value) = $10,800 Loss on redemption: $909,000 (cash paid) - $889,200 (carrying value) = $19,800