Discuss the below:
REDEMPTION OF BONDS ISSUED AT A DISCOUNT
Q: Medina Optical Supply sold bonds at a discount for $420,000 (discount of $20,000) eight years ago.
(a) The corporation redeems $25,000 of this issue at 94. The unamortized discount is $250.
(b) The corporation redeems $30,000 of this issue at 101. The unamortized discount is $300.
Prepare journal entries to record the redemption in (a) and (b).