Sandra Corporation purchased $780,000 of its bonds on June 30, 2020, at 102 and immediately retired them. The carrying value of the bonds on the retirement date was $700,000. The bonds pay annual interest and the interest payment due on June 30, 2020, has been made and recorded.

Dr Bonds Payable780,000

Dr Loss on Bond Redemption 95,600

Cr Discount on Bonds payable 80,000

Cr Cash 795,600

Explanation:

Preparation of the journal entry to record the retirement or conversion of the bonds

Based on the information we were told that the Corporation made purchased of the amount of $780,000 of their bonds on June 30, 2020, at 102 in which they immediately retired them which means that if the carrying amount of the bonds on the retirement date was the amount of $700,000 and the bonds pay annual interest while the interest payment which was due on June 30, 2020 has already be made as well as recorded, the journal entry to record the retirement or conversion of the bonds will be :

Dr Bonds Payable780,000

Dr Loss on Bond Redemption 95,600

(795,600+80,000-780,000)

Cr Discount on Bonds payable 80,000

(780,000-700,000)

Cr Cash 795,600

(780,000 x 102%)

(Being to record Redemption of Bonds)

there are so many examples for that in different areas, like biology experiment carried out in our lab recently.

here's one link :

d. to get countries or companies to stop doing something objectionable.