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On January 1 , 2 0 2 0 , Bramble Corporation issued $ 5 , 1 3 0 , 0 0 0 of 1 0
On January Bramble Corporation issued $ of bonds at due December Bramble paid $ in bond issue costs when the bonds were issue to the market. These will be amortized over the life of the bond. The premium on the bonds is also being amortized on a straightline basis over the years. Straightline is not materially different in effect from the preferable "interest method".
The bonds are callable at ie at of face amount and on January Bramble called onehalf of the bonds and retired them.
Ignoring income taxes, compute the amount of loss, if any, to be recognized by Bramble as a result of retiring the $ of bonds in
Loss on redemption
Prepare the journal entry to record the retirement. If no entry is required, select No Entry" for the account titles and enter O for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually. List all debit entries before credit entries.
Date
Account Titles and Explanation
Debit
Credit
January
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