ded Homework

Question $4,$ E$9-21$A $($similar to$)$

Part $1$ of $5$

HW Score: $61\mathrm{.}87\%,15\mathrm{.}47$ of $25$ points

$ox$ Points: $0$ of $4$

On January $1,2020,$ Franklin Corporation issued five$-$year, $12\%$ bonds payable with a face value of $$2,300,000.$ The bonds were issued at $90$ and pay interest on January $1$ and amortizes bond discounts using the straight$-$line method. On December $31,2022,$ Franklin retired the bonds early by purchasing them at a market price of $94.$ The company's fisc December $31.$

Read the requirements.

Requirement $1.$ Journalize the issuance of the bonds on January $1,2020.($Record debits first, then credits. Exclude explanations from any journal entries.$)$

Journal Entry

Requirements ${?}^{***}$

Journalize the issuance of the bonds on January $1,2020.$

Record the semiannual interest payment and amortization of bond discount on July $1,2020.$

Record the interest accrual and discount amortization on December $31,2020.$

Calculate the carrying value of the bonds payable on December $31,2022,$ prior to their retirement."

Calculate the gain or loss on the retirement of the bonds payable on December $31,2022.$ Indicate where this gain or loss will appear in the financial statements.

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