On February 1, 2023, Pat Weaver Incorporated (PWI) issued 12%, $1,700, 000 bonds for $2,000,000. PWI retired all of these bonds on January 1, 2024, at 104. Unamortized bond premium on that date was $176,800. How much gain or loss should be recognized on this bond retirement? A. $108,800 loss B. $240,000 gain C. $108,800 gain D. $204,000 gain

On February 1, 2023, Pat Weaver Incorporated (PWI) issued 12%, $1,700, 000 bonds for $2,000,000. PWI retired all of these bonds on January 1, 2024, at 104. Unamortized bond premium on that date was $176,800. How much gain or loss should be recognized on this bond retirement? A. $108,800 loss B. $240,000 gain C. $108,800 gain D. $204,000 gain

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 2 Presented below are two independent situations: i) Horton Company redeemed $400,000 face value, 12% bonds at 96 on July 31, 2021. The carrying value of the bonds on the retirement date was $428,500. The bonds pay annual interest and the interest payment due on July 31, 2021, has been made and recorded. ii) Ball Corporation retired $380,000 face value, 10% bonds on September 30, 2021, at 101. The carrying value of the bonds on the retirement date was $371,500. The bonds pay annual interest and the interest payment due on September 30, 2021 has been made and recorded.
On July 1, 2018, Miniature Company has bonds with balances as shown below. Bonds Payable 65,000 Discount Payable on Bonds 3,250 If the company retires the bonds for $66,150, what will be gain or loss on the retirement?
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Vishnu
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The December 31, 2021, statement of financial position of Bordeaux Corporation includes the following items: 9% bonds payable due December 31, 2028 P3,081,000 The bonds were issued on December 31, 2018, and have a face amount of P3,000,000 with interest payable semi-annually on July 1 and December 31 of each year. On January 1, 2022, Bordeaux retired P1,000,000 of these bonds at 98. What amount should Bordeaux report on the company’s 2022 income statement as gain or loss on the retirement of the bonds?
None
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I need part B done please and thank you.