Bond Redemption before Maturity Date a) If the Einstein Corporation Bond is "callable" and the Bofd decides to repay the principal on the ten-year bond at the end of the 6th year, the journal entry (after the interest payment was paid and journalized for the sixth year) under the following conditions would be: 1) Journalize the entry if the market or effective rate of interest on January 1, 202X is also 8%. Account Name Debit Credit 2) Journalize the entry if the market or effective rate of interest on January 1, 202X is 10%, and the corporation receives $485,000 in cash when issuing the Bonds (think Book Value of the bond), Account Name Debit Credit 3) Journalize the entry if the market or effective rate of interest on January 1, 202X is 6%, and the corporation receives $510,000 in cash when issuing the Bonds (think Book Value of the Bond). Account Name Debit Credit
