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On January 1, 2020, Delaney Corporation issued five-year, 6% bonds payable with a face value of $2,700,000. The bonds 31. 2022. Delaney relired the band
On January 1, 2020, Delaney Corporation issued five-year, 6% bonds payable with a face value of $2,700,000. The bonds 31. 2022. Delaney relired the band early by purchasing them at a market price of 92. The company's fiscal year ends on Dossued at 87 and pay interest on January 1 and July 1. Delaney amortizes bond discounts using the straight-line method. On December er 31 Road the requirements Requirement 1. Joumalize the issuance of the bonds on January 1, 2020. (Record debits first, then credits. Exclude explanations from any joumal entries.) Journal Entry Date Accounts Debit Credit 2020 Jan 1 X Requirements 1. Journalize the issuance of the bonds on January 1, 2020 2. Record the semiannual interest payment and amortization of bond discount on July 1, 2020. 3. Record the interest accrual and discount amortization on December 31, 2020. 4. Calculate the carrying value of the bonds payable on December 31, 2022, prior to their retirement 5. Calculate the gain or loss on the retirement of the bonds payable on December 31, 2022. Indicate where this gain or loss will appear in the financial statements Print Done
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