Answer:
$2,781
Explanation:
The journal entry is shown below:
Bonds payable $309,000
Premium on bonds payable $12,051 ($321,051 - $309,000)
To Gain on redemption of bonds $2,781
To cash ($309,000 × 1.03) $318,270
(being the bond payable issued is recorded)
For recording this we debited the bond payable and the premium on bond payable and credited the gain and cash so that the correct posting could be done
