Loss on Redemption of Bonds

$($To record reacquisition of bonds$)$

$\frac{12}{1}\frac{?}{24},$

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$\frac{6}{1}\frac{?}{25}$

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longrightarrow

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$[$ Sweet Acacia Ltd$.$ sells $$5\mathrm{.}00$ million of $9\%$ bonds on June $1,2023.$ The bonds pay interest on December $1$ and

June $1.$ The bonds' due date is June $1,2027.$ The bonds yield $8\%.$ On October $1,2024,$ Sweet Acacia buys back

$$1\mathrm{.}00$ million worth of bonds for $$1\mathrm{.}70$ million, including accrued interest.

Click here to view the factor table PRESENT VALUE OF $1.$

Click here to view the factor table PRESENT VALUE OF AN ANNUITY OF $1.$

Prepare all of the relevant journal entries from the time of sale until the date indicated.For situation $2,$ prepare the journal entries through December $31,2025.$ Assume that no reversing entries were

made. Use the amounts arrived at from using the financial calculator. Use the effective interest method for

discount and premium amortization. $($Hint: Refer to Chapter $3$ for tips on calculating$)($Round present value

factor calculations to $5$ decimal places, eg$-125124$ and final ansmer to $0$ decimal places eg$.$

$58,971.$ Credit accoumt titles are automatically indented when the amount is entered. Do mot

indent manually. If mo entry is required, select $"$No Entry" for the account titles and enter $0$ for

the amounts. List all dehit entries before credit entries.$]$