Answer:
20Y1
Mar 1
Dr Cash 32,700,000
Cr Bonds payable 32,700,000
Sept 1
Dr Interest expense 981,000
Cr Cash 981,000
20Y2
Sept 1
Dr Bonds payable $32,700,000
Cr Loss on Redemption of Bonds 654000
Cr Cash 33,354,000
Explanation:
Adele Corp. Journal entries
20Y1
Mar 1
Dr Cash 32,700,000
Cr Bonds payable 32,700,000
Sept 1
Dr Interest expense 981,000 ($32,700,000*6%/2)
Cr Cash 981,000
20Y2
Sept 1
Dr Bonds payable $32,700,000
Cr Loss on Redemption of Bonds 654,000
Cr Cash 33,354,000 ($32,700,000*1.02)
