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please help with loss on redemption and journal entries On January 2, 2015, Coronado Corporation issued $1,200,000 of 10% bonds at 96 due December 31,
please help with loss on redemption and journal entries
On January 2, 2015, Coronado Corporation issued $1,200,000 of 10% bonds at 96 due December 31, 2024. Interest on the bonds is payable annually each December 31. The discount on the bonds is also being amortized on a straight-line basis over the 10 years. (Straight-line is not materially different in effect from the preferable "interest method.") The bonds are callable at 101 (ie, at 101% of face amount) and on January 2, 2020, Coronado called $720,000 face amount of the bonds and redeemed them Ignoring income taxes compute the amount of loss, if any, to be recognized by Coronado as a result of retiring the $720,000 of bonds in 2020. (Round answer to decimal places, eg. 38,548.) Loss on redemption $ 21744 Prepare the journal entry to record the redemption (Round answers to decimal places, eg, 38,548. If no entry is required, select "No Entry" for the account titles and enter for the amounts. Credit account titles are automatically indented when amount is entered. Do not Indent manually) Account Titles and Explanation Debit Credit Date January 2, 2020 Bonds Payable 720000 Loss on Redemption of Bonds 21744 14544 Discount on Bonds Payable repare the journal entry to record the redemption. (Round answers to decimal places, eg, 38,548. If no entry is required, select "No try" for the account titles and enter for the amounts. Credit account titles are automatically indented when amount is entered. Do not dent manually.) Account Titles and Explanation Debit Credit Date January 2 2020 Bonds Payable 720000 Loss on Redemption of Bonds 21744 Discount on Bonds Payable 14544 Cash 727000
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