In the statement of financial position of Leblanc Company as of December 31, 2020, the following accounts appear. Bonds Payable, 18%, due January 1, 2023 P1,000,000 Premium on Bonds Payable 70,000 Accrued interest on Bonds Payable 90,000 Interest is payable semi-annually on January 1 and July 1. On January 1, 2021, Leblanc redeemed the bonds at 98 plus accrued interest. How much is the gain (loss) on the redemption of the bonds? Enclosed in parenthesis in case of loss.
In the statement of financial position of Leblanc Company as of December 31, 2020, the following accounts appear. Bonds Payable, 18%, due January 1, 2023 P1,000,000 Premium on Bonds Payable 70,000 Accrued interest on Bonds Payable 90,000 Interest is payable semi-annually on January 1 and July 1. On January 1, 2021, Leblanc redeemed the bonds at 98 plus accrued interest. How much is the gain (loss) on the redemption of the bonds? Enclosed in parenthesis in case of loss.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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In the
Bonds Payable, 18%, due January 1, 2023
P1,000,000
Premium on Bonds Payable
70,000
Accrued interest on Bonds Payable
90,000
Interest is payable semi-annually on January 1 and July 1. On January 1, 2021, Leblanc redeemed the bonds at 98 plus accrued interest.
How much is the gain (loss) on the redemption of the bonds? Enclosed in parenthesis in case of loss.
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