Answer:
credit of $36,701 to Discount on Bonds Payable
Explanation:
Dr Bonds payable $980,000
Dr Loss on bond redemption $2,499
[$1,016,701-($980,000 x 104%)
Cr Discount on bonds payable $36,701
($1,019,200-$980,000-$2,499)
Cr Cash $1,019,200
($980,000 x 104%)
The entry to record the redemption will include
a credit of $36,701 to Discount on Bonds Payable
