The situations presented here are independent of each other. For each situation, prepare the appropriate journal entry for the redemption of the bonds. a. Whispering Winds Corp. redeemed $130,500 face value, 10% bonds on June 30, 2020, at 105. The carrying value of the bonds at the redemption date was $117,000. The bonds pay annual interest, and the interest payment due on June 30, 2020, has been made and recorded. 2.
b. Sandhill Co. redeemed $161,000 face value, 18% bonds on June 30, 2020, at 97. The carrying value of the bonds at the redemption date was $164,000. The bonds pay annual interest, and the interest payment due on June 30, 2020, has been made and recorded.