Chapter 14 Long-Term Liabilities, Intermediate Accounting Donald Kieso, 16th Edition

I am having trouble with the red marks. Would love some assistance with the red marks. Thanks!

Exercise 14-12

On January 2, 2012, Culver Corporation issued $1,600,000 of 10% bonds at 99 due December 31, 2021. 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 102 (i.e., at 102% of face amount), and on January 2, 2017, Culver called $960,000 face amount of the bonds and redeemed them.

Ignoring income taxes, compute the amount of loss, if any, to be recognized by Culver as a result of retiring the $960,000 of bonds in 2017. (Round answer to 0 decimal places, e.g. 38,548.)

Loss on redemption ???

Prepare the journal entry to record the redemption.

Exercise 14-12 Your answer is partially correct. Try again. On January 2, 2012, Culver Corporation issued $1,600,000 of 10% bonds at 99 due December 31, 2021, 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 102 (i.e., at 102% of face amount), and on January 2, 2017, Culver called $960,000 face amount of the bonds and redeemed them. Ignoring income taxes, compute the amount of loss, if any, to be recognized by Culver as a result of retiring the $960,000 of bonds in 2017. (Round answer to 0 decimal places, e.g. 38,548.) Loss on redemption 3,600 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.) Date Account Titles and Explanation Debit Credit January 2, 2017 Bonds Payabl on Redemption of Bonds 33,600 iscount on Bonds 14,400 Cash 79,20