=+EX 14-12 Entries for issuing installment note transactions obj. 4 At the beginning of the current year, two bond issues (X and Y) were outstanding.

During the year, bond issue X was redeemed and a significant loss on the redemption of bonds was reported as an extraordinary item on the income statement. At the end of the year, bond issue Y was reported as a noncurrent liability. The maturity date on the bonds was early in the following year.