Saved Check my work mode : This shows what is correct or incorrect for the work you have completed so far. It does not Exercise 14-11 Straight-Line: Bond computations, amortization, and bond retirement LO P2, P4 On January 1, 2019, Shay Company issues $410,000 of 12%, 20 year bonds. The bonds sell for $399,750. Six years later, on January 1. 2025, Shay retires these bonds by buying them on the open market for $430,500. All interest is accounted for and paid through December 31, 2024, the day before the purchase. The straight-line method is used to amortize any bond discount. 1. What is the amount of the discount on the bonds at issuance? 2. How much amortization of the discount is recorded on the bonds for the entire period from January 1, 2019, through December 31, 2024? 3. What is the carrying (book) value of the bonds as of the close of business on December 31, 2024? 4. Prepare the journal entry to record the bond retirement. Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. Req 1 and 2 Reg 3 Req 4 1. What is the amount of the discount on the bonds at issuance? 2. How much amortization of the discount is recorded on the bonds for the entire period from January 1, 2019, through December 31, 2024? 1. 2. Amount of discount Amortization of discount $ 408.450 $ 5,775 Req 1 and 2 Req3 > Exercise 14-11 Straight-Line: Bond computations, amortization, and bond retirement LO P2, P4 On January 1, 2019, Shay Company issues $410,000 of 12%, 20-year bonds. The bonds sell for $399,750. Six years later, on January 1 2025, Shay retires these bonds by buying them on the open market for $430,500. All interest is accounted for and paid through December 31, 2024, the day before the purchase. The straight-line method is used to amortize any bond discount. 1. What is the amount of the discount on the bonds at issuance? 2. How much amortization of the discount is recorded on the bonds for the entire period from January 1, 2019, through December 31 2024? 3. What is the carrying (book) value of the bonds as of the close of business on December 31, 2024? 4. Prepare the journal entry to record the bond retirement. Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. Req 1 and 2 Req3 Reg 4 What is the carrying (book) value of the bonds as of the close of business on December 31, 2024? Bonds 408.450 $ Par value Romaining discount Carrying value 5,775 402,675 $ ( Bag 1 and 2 Reg4 > Exercise 14-11 Straight-Line: Bond computations, amortization, and bond retirement LO P2, P4 On January 1, 2019, Shay Company issues $410,000 of 12%, 20-year bonds. The bonds sell for $399,750. Six years later, on January 1, 2025, Shay retires these bonds by buying them on the open market for $430,500. All interest is accounted for and paid through December 31, 2024, the day before the purchase. The straight-line method is used to amortize any bond discount. 1. What is the amount of the discount on the bonds at issuance? 2. How much amortization of the discount is recorded on the bonds for the entire period from January 1, 2019, through December 31, 2024? 3. What is the carrying (book) value of the bonds as of the close of business on December 31, 2024? 4. Prepare the journal entry to record the bond retirement. Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. Red 1 and 2 Req3 Reg Prepare the journal entry to record the bond retirement NO Debit Credit Date January 01 General Journal Bonds payable Loss on Retirement of Bonds Discount on bonds payable 420,000 24.675 Cash 5.775 438,900 (Rg3
