Question
On January 1, 2015, Pina Industries Inc. issued a $1,018,000, 10-year bond. The bond sold at 97, and paid 13% interest each January 1 and
On January 1, 2015, Pina Industries Inc. issued a $1,018,000, 10-year bond. The bond sold at 97, and paid 13% interest each January 1 and July 1. Pina called at 103 and cancelled the bond on January 1, 2020. Assume the company used the straight-line method of amortization.
1. Calculate the gain or loss on redemption.
2. Prepare the journal entry to record the early retirement of the bond.
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The Controllers Toolkit
Authors: Christine H. Doxey
1st Edition
1119700647, 9781119700647
