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Scenario 1: Levon's Rock Removal Co. issued $1,000,000, 5-year bonds at a discount. Prior to maturity, when the carrying value of the bonds is $993,000,
Scenario 1: Levon's Rock Removal Co. issued $1,000,000, 5-year bonds at a discount. Prior to maturity, when the carrying value of the bonds is $993,000, the company redeems the bonds at 98. Scenario 2: Emily's Baked Potato Delivery Service issued $500,000, 5- year bonds at a premium. Prior to maturity, when the carrying value of the bonds is $502,000, the company redeems the bonds at 101. Prepare the journal entries to record the redemption of the bonds in both scenarios
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