Answered: What amount should be recognized as…

Business

Accounting

What amount should be recognized as gain or loss on bond retirement on June 30, 2022?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

On January 2021, an entity issued 5-year 5,000 bonds face amount of P1,000 per bond for P5,380,000 to yield 10%. Interest 12% is payable annually every December 31. On June 30, 2022, the entity retired 2,000 bonds at 96 plus accrued interest. What amount should be recognized as gain or loss on bond retirement on June 30, 2022?

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