contestada

A corporation retired $670,000 face value of bonds, which have an unamortized discount of $27,000, by repurchasing them for $670,000. How much was the gain or loss on the retirement of the bonds

Respuesta :

jepessoa

Answer:

$27,000 loss

Explanation:

gain/loss on retirement of bonds = carrying value - retirement cost

  • carrying value = $670,000 - $27,000 = $643,000
  • retirement cost = $670,000

gain/loss on retirement of bonds = $643,000 - $670,000 = -$27,000

Dr Bonds payable 670,000

Dr Loss on retirement of bonds 27,000

    Cr Cash 670,000

    Cr Discount on bonds payable 27,000

ACCESS MORE
ACCESS MORE
ACCESS MORE
ACCESS MORE

Otras preguntas