Answer and Explanation:
The Journal Entry is shown below:-
1. Bond Interest Payable $47,500
To Cash $47,500
(Being payment of interest on bonds is recorded)
2. Bonds Payable Dr, $170,000
Loss on Redemption of Bonds Dr, $10,200
($180,200 - $170,000)
To Cash $180,200
($170,000 × 106%)
(Being redemption of bonds is recorded)
3. Bond Interest Expense $32,400
($575,000 - $170,000) × 8%
To Bond Interest Payable $32,400
(Being accrue interest on remaining bonds is recorded)
