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A bond issue with a maturity value of $100,000 and a discount of $4,200 is paid off and retired at 98. What is the
A bond issue with a maturity value of $100,000 and a discount of $4,200 is paid off and retired at 98. What is the gain or loss on this transaction? O $4,200 loss O $2,200 loss $2,000 loss $2,200 gain $4,200 gain On July 1, 19X5, Justin Corporation issues $4,000,000 of 10-year bonds dated July 1, 20X5, at 99.5 when the market rate of interest was 8%. Justin uses the effective- interest method of amortization. Interest is paid each June 30 and December 31. The entry to record the first semiannual interest payment on December 31, 20X5, will include a credit to interest payable for $160,000 credit to premium on bonds payable for $20,000 credit to cash for $160,000 credit to cash for an amount greater than $159,200 debit to interest expense for $159,200 Rosalia Corp. issues $1,000,000 12% 10-year bonds at 104 on October 1, 20X7. Interest payment dates are April 1 and October 1. The company keeps its accounts on a calendar year basis and uses straight-line amortization. What is the carrying value of the debt on December 31, 20X8? $1,031,000 $1,032,000 $1,035,000 $1,039,000 $1,045,000
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