1. On July 1, 2017, the Daisy Co. sold $400,000 in long-term bonds to the Jewel Co. The bonds will mature in 10 years and have a stated interest rate of 9%. The market rate at time of issuance was 12%. Therefore, the bonds sold for $332,196. The bonds pay interest annually on June 30 each year. The bonds are to be accounted for under the effective interest method. Below is a partial bond amortization schedule.

	Cash	Interest Expense	Amortization	Carrying Value
7/1/2017				332,196
6/30/2018	36,000	39,864	3,864	336,060
6/30/2019	36,000	40,327	4,327	340,387
6/30/2020	36,000	40,846	4,846	345,233

If Daisy Co. buys back the bonds at 101 plus accrued interest on 12/31/2019, what is the gain/loss reported on the retirement of bonds? Be sure to include the $ amount and note gain or loss.

2. Apple Corp. issued a 6% note payable in the amount of $4.8 million on October 1, 2017. The note is payable in 4 equal annual payments of $1.2 million plus interest. The first interest and principal payment was made on October 1, 2018. Apple's fiscal year end is June 30th. On Apple's balance sheet at June 30, 2019, what amount should be reported as Interest Payable for this note?