On January 1, 2013, Shay issues $300,000 of 10%, 15-year bonds at a price of 97.75. Six years later, on January 1, 2019, Shay retires 20% of these bonds by buying them on the open market at 105.25. All interest is accounted for and paid through December 31, 2018, the day before the purchase. The straight-line method is used to amortize any bond discount.

14.

value: 2.00 points

2.	What is the amount of the discount on the bonds at January 1, 2013?

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value: 2.00 points

3.	How much amortization of the discount is recorded on the bonds for the entire period from January 1, 2013, through December 31, 2018?

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value: 2.00 points

4.	What is the carrying (book) value of the bonds and the carrying value of the 20% soon-to-be-retired bonds as of the close of business on December 31, 2018?

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17.

value: 2.00 points

5.	How much did the company pay on January 1, 2019, to purchase the bonds that it retired?

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18.

value: 2.00 points

6.	What is the amount of the recorded gain or loss from retiring the bonds?

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value: 2.00 points

7.	Prepare the journal entry to record the bond retirement at January 1, 2019.