
Bonds
Governmental agencies, companies and universities are issuing a type of interest bearing notes payable is called as bond. It is one of the important debt instrument used for raising funds.
Premium on
Selling price of the bond is greater than the face value of bond is known as premium on bond.
Redemption of Bonds
The process of repaying the sale amount of bonds to bondholders, at the time of maturity or before the maturity period is called as redemption of bonds. It is otherwise called as retirement of bonds.
To find: Which accounts are debited and which are credited if a bond issue originally sold at a premium is redeemed before maturity at 97 immediately following the payment of interest.

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Chapter 10 Solutions
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