On January 1, 2018, Swifty Industries Inc. issued a $1,016,000, 10-year bond. The bond sold at 97, and paid 16% interest each January 1 and July 1. Swifty called at 105 and cancelled the bond on January 1, 2023. Assume the company used the straight-line method of amortization. (a1) Your answer is correct. Calculate the gain or loss on redemption. Loss on redemption of bond $ eTextbook and Media (a2) 66040 Date Account Titles January 1 Prepare the journal entry to record the early retirement of the bond. (List all debit entries before credit entries. Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.) Attempts: 1 of 3 used Debit Cred
On January 1, 2018, Swifty Industries Inc. issued a $1,016,000, 10-year bond. The bond sold at 97, and paid 16% interest each January 1 and July 1. Swifty called at 105 and cancelled the bond on January 1, 2023. Assume the company used the straight-line method of amortization. (a1) Your answer is correct. Calculate the gain or loss on redemption. Loss on redemption of bond $ eTextbook and Media (a2) 66040 Date Account Titles January 1 Prepare the journal entry to record the early retirement of the bond. (List all debit entries before credit entries. Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.) Attempts: 1 of 3 used Debit Cred
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:On January 1, 2018, Swifty Industries Inc. issued a $1,016,000, 10-year bond. The bond sold at 97, and paid 16%
interest each January 1 and July 1. Swifty called at 105 and cancelled the bond on January 1, 2023. Assume the
company used the straight-line method of amortization.
(a1)
Your answer is correct.
Calculate the gain or loss on redemption.
Loss on redemption of bond $
eTextbook and Media
(a2)
66040
Date Account Titles
January
1
Prepare the journal entry to record the early retirement of the bond. (List all debit entries before credit
entries. Credit account titles are automatically indented when the amount is entered. Do not
indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for
the amounts.)
Attempts: 1 of 3 used
Debit
Cred
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