Testbank Multiple Choice Question 77

On October 1, 2020 Coronado Industries issued 6%, 10-year bonds with a face value of $6020000 at 104. Interest is paid on October 1 and April 1, with any premiums or discounts amortized on a straight-line basis. The entry to record the issuance of the bonds would include a credit of

$180600 to Interest Payable.

$240800 to Discount on Bonds Payable.

$5779200 to Bonds Payable.

$240800 to Premium on Bonds Payable.

Testbank Multiple Choice Question 88

At December 31, 2020 the following balances existed on the books of Sheridan Company:

	Bonds Payable		$7080000
	Discount on Bonds Payable		974000
	Interest Payable		165000

If the bonds are retired on January 1, 2021, at 103, what will Sheridan report as a loss on redemption?

$953000

$1186400

$1351400

$708000