On January 1, 2017, Shay issues $440,000 of 10%, 20-year bonds at a price of 9750. Six years later, on January 1, 2023, Shay retires 20% of these bonds by buying them on the open market at 105.00. All interest is accounted for and paid through December 31, 2022, the day before the purchase. The straight-line method is used to amortize any bond discount Exercise 10-9 Part 2 2. What is the amount of the discount on the bonds at January 1, 2017? Amount of discount On January 1, 2017, Shay issues $440,000 of 10%, 20-year bonds at a price of 9750. Six years later, on January 1, 2023, Shay retires 20% of these bonds by buying them on the open market at 105.00. All interest is accounted for and paid through December 31, 2022, the day before the purchase. The straight-line method is used to amortize any bond discount Exercise 10-9 Part 3 3. How much amortization of the discount is recorded on the bonds for the entire period from January 1, 2017 through December 31 2022? Amortization of discount On January 1, 2017, Shay issues $440,000 of 10%, 20-year bonds at a price of 9750. Six years later, on January 1, 2023. Shay retires 20% of these bonds by buying them on the open market at 105.00. All interest is accounted for and paid through December 31, 2022, the day before the purchase. The straight-line method is used to amortize any bond discount Exercise 10-9 Part 4 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, 2022? Entire Group Retired 20% Par value Remaining discount Carrying value $ 0 $ 0 On January 1, 2017, Shay issues $440,000 of 10%, 20-year bonds at a price of 97.50. Six years later, on January 1, 2023, Shay retires 20% of these bonds by buying them on the open market at 105.00. All interest is accounted for and paid through December 31, 2022, the day before the purchase. The straight-line method is used to amortize any bond discount Exercise 10-9 Part 5 5. How much did the company pay on January 1, 2023, to purchase the bonds that it retired? Purchase price On January 1, 2017, Shay issues $440,000 of 10%, 20-year bonds at a price of 97.50. Six years later, on January 1, 2023, Shay retires 20% of these bonds by buying them on the open market at 105.00. All interest is accounted for and paid through December 31, 2022, the day before the purchase. The straight-line method is used to amortize any bond discount Exercise 10-9 Part 6 6. What is the amount of the recorded gain or loss from retiring the bonds? On January 1, 2017, Shay issues $440,000 of 10%, 20-year bonds at a price of 9750. Six years later, on January 1, 2023, Shay retires 20% of these bonds by buying them on the open market at 105.00. All interest is accounted for and paid through December 31, 2022, the day before the purchase. The straight-line method is used to amortize any bond discount Exercise 10-9 Part 7 7. Prepare the journal entry to record the bond retirement at January 1, 2023. View transaction list Journal entry worksheet 1 Record the retirement of 20% of the bonds before maturity on January 1, 2023