Explore BrainMass

Explore BrainMass

    Gain or Loss on the Retirement of These Bonds

    This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

    Describe how to calculate.

    A company has 10%, 20-year bonds outstanding with a par value of $500,000. The company calls the bonds at 96 when the unamortized discount is $24,500. Calculate the gain or loss on the retirement of these bonds.

    © BrainMass Inc. brainmass.com June 3, 2020, 11:58 pm ad1c9bdddf
    https://brainmass.com/business/accounting/gain-loss-retirement-these-bonds-310721

    Solution Preview

    Dear student,
    Solution is provided in a separate excel file attached under the following parts.

    1 Carrying value on the date of premature redemption

    2 Working for Loss on Bond Redemption

    3 Journal entry for redemption of Bonds payable

    4 ...

    Solution Summary

    The expert describes how to calculate the gain or loss on the retirement of the bonds.

    $2.19

    ADVERTISEMENT