***Please explain how to get

interest payable

discount on bonds payable

loss on redemption of bonds

Ex. 14-106Retirement of bonds. Prepare journal entries to record the following retirement. (Show computations and round to the nearest dollar.) The December 31, 2007 balance sheet of Marin Co. included the following items: 7.5% bonds payable due December 31, 2015 $1,200,000 Unamortized discount on bonds payable 48,000 The bonds were issued on December 31, 2005 at 95, with interest payable on June 30 and December 31. (Use straight-line amortization.) On April 1, 2008, Marin retired $240,000 of these bonds at 101 plus accrued interest. Solution 14-106 Interest Expense 4,800 Cash ($240,000 x 7.5% 3/12) 4,500 Discount on Bonds Payable ($48,000 1/5 1/8 * 3/12) 300 Bonds Payable 240,000 Loss on Redemption of Bonds 11,700 Discount on Bonds Payable [(1/5 ~ $48,000) - $300] 9,300 Cash 242,400