Question
On Jan. 1, 2015, Gymy Co. issued $500,000 of 10%, 10-year bonds for $485,000. Interest is paid on July 1 and Jan. 1. Exactly four
On Jan. 1, 2015, Gymy Co. issued $500,000 of 10%, 10-year bonds for $485,000. Interest is paid
on July 1 and Jan. 1. Exactly four years later the bonds were redeemed/retired at $495,000.
Straight-line amortization is used.
a) Compute the book value of the bonds on the retirement date.
(Journal entries are not required but label all your computations clearly.)
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b) Compute the gain or loss on retirement.
(Journal entry not required and is optional here but label all your computations clearly.)
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GMP Audit Trainer Good Manufacturing Practices Made Easy
Authors: Mr Brendan Cooper
1st Edition
1548711934, 978-1548711931
