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Problem D-B Long-Term Liabilities 1. {in March 31, 2013, Peppermint Patty Corp. sold $1,000,000 {par value] 3%, 10-year bonds for $961,500 including accrued interest. The

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Problem D-B Long-Term Liabilities 1. {in March 31, 2013, Peppermint Patty Corp. sold $1,000,000 {par value] 3%, 10-year bonds for $961,500 including accrued interest. The bonds were dated January 1, 2013. Interest is paid semi- annually on January 1 and July 1. On April 1, 201?. Peppermint Patty purchased half of the bonds on The open market at 99 plus accrued interest and retired Them. The corporation uses the straight-line method for amortization of bond premiums and discounts. a. Calculate the amount of me gain or loss on retirement of the bonds. b. Prepare Ihe journal entries required on April 1. 201}I to record retirement of the bonds. Assume that interest and premium or discount amortization have been recorded 1rough January 1, 2101?- c. Prepare Ihe journal entry on July 1, 201? to record interest and premium or discount amortization

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