Question
Reporting Bonds At the beginning of the current year, two bond issues (Simmons Industries 7%, 20-year bonds and Hunter Corporation 8%, 10-year bonds) were outstanding.
Reporting Bonds
At the beginning of the current year, two bond issues (Simmons Industries 7%, 20-year bonds and Hunter Corporation 8%, 10-year bonds) were outstanding. During the year, the Simmons Industries bonds were redeemed and a significant loss on the redemption of bonds was reported on the income statement. At the end of the year, the Hunter bonds were reported as a noncurrent liability. The maturity date on the Hunter bonds was early in the following year.
The Hunter Corporation bonds outstanding at the end of the current year should be reported as a ______
on the balance sheet and the loss on redemption of the Simmons Industries bonds should be reported as an ________ in the income statement.
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