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Redemption of Bonds Payable A $850,000 bond issue on which there is an unamortized premium of $73,000 is redeemed for $821,00Redemption of Bonds Payable A $850,000 bond issue on which there is an unamortized premium of $73,000 is redeemed for $821,00Redemption of Bonds Payable A $850,000 bond issue on which there is an unamortized premium of $73,000 is redeemed for $821,00Redemption of Bonds Payable A $850,000 bond issue on which there is an unamortized premium of $73,000 is redeemed for $821,00

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a) Journal entry Bond redemption

Date General Journal Debit Credit
Bonds payable 850000
Premium on bonds payable 73000
Gain on redemption of bonds 102000
Cash 821000
(To record bond redemption)
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