3.On January 1, a company retired $800,000 face value bonds at a call price of 103. The bonds were originally issued for $848,000. On the retirement date the bonds had an unamortized premium of $28,352. The entry to retire the debt would include a: a. b.ben credit to cash for $853,203 credit to gain for $4,352 credit to premium for $28,352 debit to loss for $52,203 C. d. debit to bonds payable for $828,352 e.

3.On January 1, a company retired $800,000 face value bonds at a call price of 103. The bonds were originally issued for $848,000. On the retirement date the bonds had an unamortized premium of $28,352. The entry to retire the debt would include a: a. b.ben credit to cash for $853,203 credit to gain for $4,352 credit to premium for $28,352 debit to loss for $52,203 C. d. debit to bonds payable for $828,352 e.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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On January 1, 2014, New Country issued $200,000 of ten-year 8% bonds at 98. These bonds were callable at 102 at any time after three years. Straight-line amortization was used. On January 1, 2018, a new bond issue was sold and the old bonds were called. What was the loss on bond retirement? $8,000 $2,000 $6,400 $4,400
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