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Exercise 15-08 The following are two independent situations. 1. Blossom Corporation redeemed $134,500 face value, 13% bonds o

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Journal entry

No Account and explanation Debit Credit
1 Bonds payable 134500
Loss on redemption of bonds 16380
Discount on bonds payable 11000
Cash (134500*1.04) 139880
2 Bonds payable 150000
Premium on bonds payable 4000
Gain on redemption of bonds 10000
Cash (150000*.96) 144000
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