Answer:
Dr Bonds Payable $500,000
Dr Premium on Bonds Payable $67,000
Cr Gain on Redemption of Bonds $77,000
Cr Cash $490,000
Explanation:
Preparation of the journal entry to Record the redemption of the bonds
Dr Bonds Payable $500,000
Dr Premium on Bonds Payable $67,000
Cr Gain on Redemption of Bonds $77,000
($500,000 + $67,000 - $490,000)
Cr Cash $490,000
(To record redemption of bonds)
