On December 31, 2020, the liability section of Martin Luther Company's statement of financial position included 10% bonds payable of P10,000,000 and unamortized premium on bonds payable of P180,000. Further verification revealed that these bonds were issued on December 31, 2018 and will become due on December 31, 2028. Interest at 12% is payable every December 31. On April 1, 2021, Martin Luther retired P4,000,000 of these bonds at 97 plus accrued interest. How much was the gain or (loss) on the retirement of bonds on April 1, 2021? Enclosed in parenthesis in case of loss.
On December 31, 2020, the liability section of Martin Luther Company's statement of financial position included 10% bonds payable of P10,000,000 and unamortized premium on bonds payable of P180,000. Further verification revealed that these bonds were issued on December 31, 2018 and will become due on December 31, 2028. Interest at 12% is payable every December 31. On April 1, 2021, Martin Luther retired P4,000,000 of these bonds at 97 plus accrued interest. How much was the gain or (loss) on the retirement of bonds on April 1, 2021? Enclosed in parenthesis in case of loss.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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On December 31, 2020, the liability section of Martin Luther Company's
On April 1, 2021, Martin Luther retired P4,000,000 of these bonds at 97 plus accrued interest.
How much was the gain or (loss) on the retirement of bonds on April 1, 2021? Enclosed in parenthesis in case of loss.
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