x 14-13 Reporting bonds At the beginning of the current year, two bond issues (Simmons Industries 7%, 20-year bonds and Hunter Corporation 896, 10-year bonds) were outstanding. During the year, the sim- mons Industries bonds were redeemed and a significant loss on the redemption of bonds was reported as cost of merchandise sold on the income statement. At the end of the year, the Hunter Corporation bonds were reported as a noncurrent liability. The maturity date on the Hunter Corporation bonds was early in the following year OBJ. 5 Identify the flaws in the reporting practices related to the two bond issues