The December 31, 2020, statement of financial position of Dodge Corporation includes the following items: 9% bonds payable due December 31, 2028 P1,400,000 Unamortized premium on bonds payable 37,800 The bonds were issued on December 31, 2018, at 103, with interest payable on July 1 and December 31 of each year. Dodge uses straight-line amortization. On March 1, 2020, Dodge retired P560,000 of these bonds at 98 plus accrued interest. What should Dodge record as a gain on retirement of these bonds?
The December 31, 2020, statement of financial position of Dodge Corporation includes the following items: 9% bonds payable due December 31, 2028 P1,400,000 Unamortized premium on bonds payable 37,800 The bonds were issued on December 31, 2018, at 103, with interest payable on July 1 and December 31 of each year. Dodge uses straight-line amortization. On March 1, 2020, Dodge retired P560,000 of these bonds at 98 plus accrued interest. What should Dodge record as a gain on retirement of these bonds?
Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
Chapter9: Long-term Liabilities
Section: Chapter Questions
Problem 95PSB
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Question
The December 31, 2020,
|
9% bonds payable due December 31, 2028 |
P1,400,000 |
|
Unamortized premium on bonds payable |
37,800 |
The bonds were issued on December 31, 2018, at 103, with interest payable on July 1 and December 31 of each year. Dodge uses straight-line amortization.
On March 1, 2020, Dodge retired P560,000 of these bonds at 98 plus accrued interest. What should Dodge record as a gain on retirement of these bonds?
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