Ignoring interest, compute the gain or loss. Loss on redemption $ Ignoring interest, record this refunding transaction.
Metlock Company had bonds outstanding with a maturity value of $323,000. On April 30, 2020, when these bonds had an unamortized discount of $10,000, they were called in at 104. To pay for these bonds, Metlock had issued other bonds a month earlier bearing a lower interest rate. The newly issued bonds had a life of 10 years. The new bonds were issued at 102 (face value $323,000).
Ignoring interest, compute the gain or loss.
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$
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Ignoring interest, record this refunding transaction. (If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.)
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Account Titles and Explanation
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Debit
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Credit
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(To record redemption of bonds payable)
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