Question
In: Accounting
On January 2, 2015, Concord Corporation issued $1,300,000 of 10% bonds at 98 due December 31,...
On January 2, 2015, Concord Corporation issued $1,300,000 of 10% bonds at 98 due December 31, 2024. Interest on the bonds is payable annually each December 31. The discount on the bonds is also being amortized on a straight-line basis over the 10 years. (Straight-line is not materially different in effect from the preferable “interest method.”)
The bonds are callable at 101 (i.e., at 101% of face amount), and on January 2, 2020, Concord called $780,000 face amount of the bonds and redeemed them. Ignoring income taxes, compute the amount of loss, if any, to be recognized by Concord as a result of retiring the $780,000 of bonds in 2020. (Round answer to 0 decimal places, e.g. 38,548.)
Loss on redemption : _________ ( $enter a dollar amount of loss on redemption rounded to 0 decimal places )
Prepare the journal entry to record the redemption. (Round answers to 0 decimal places, e.g. 38,548. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.)
Solutions
ekkarill92 answered 1 year agoRelated Solutions
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On January 2, 2015, L Corporation issued $2,050,000 of 10% bonds
at 96 due December 31, 2024. Interest on the bonds is payable
annually each December 31. The discount on the bonds is also being
amortized on a straight-line basis over the 10 years.
(Straight-line is not materially different in effect from the
preferable “interest method.”)
The bonds are callable at 101 (i.e., at 101% of face amount), and
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(Straight-line is not materially different in effect from the
preferable “interest method”.)
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Calculate the interest expense incurred by the Mayfield
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Required:
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Required: Prepare the journal entries to record the issuance of
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4. On January 2,
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annually, each December 31. The bonds are callable at 101 (i.e., at
101% of the face amount) and on January 2, 2019, Prebish called
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POINTS)
Instructions
Determine the price of the Prebish bonds, when issued on
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(Round intermediate calculations to 6 decimal places,
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