On January 2, 2015, Shamrock Corporation issued $1,900,000 of 10% bonds at 97 due December 31, 2024. Interest on the bonds is payable annually each December 31. The discount on the bonds is also being amortized on a straight-line basis over the 10 years. (Straight-line is not materially different in effect from the preferable “interest method.”)The bonds are callable at 102 (i.e., at 102% of face amount), and on January 2, 2020, Shamrock called $1,140,000 face amount of the bonds and redeemed them.Ignoring income taxes, compute the amount of loss, if any, to be recognized by Shamrock as a result of retiring the $1,140,000 of bonds in 2020. (Round answer to 0 decimal places, e.g. 38,548.) Loss on redemption $enter a dollar amount of loss on redemption rounded to 0 decimal places Prepare the journal entry to record the redemption.
On January 2, 2015, Shamrock Corporation issued $1,900,000 of 10% bonds at 97 due December 31, 2024. Interest on the bonds is payable annually each December 31. The discount on the bonds is also being amortized on a straight-line basis over the 10 years. (Straight-line is not materially different in effect from the preferable “interest method.”)
The bonds are callable at 102 (i.e., at 102% of face amount), and on January 2, 2020, Shamrock called $1,140,000 face amount of the bonds and redeemed them.
Ignoring income taxes, compute the amount of loss, if any, to be recognized by Shamrock as a result of retiring the $1,140,000 of bonds in 2020. (Round answer to 0 decimal places, e.g. 38,548.)
| Loss on redemption | $enter a dollar amount of loss on redemption rounded to 0 decimal places |
Prepare the
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