On January 1, 2020 Jinn Inc. issued 10-year, 10% $100,000 bonds for 105, because the market rate of interest on that date was 8%. The bonds pay interest annually on December 31st each year. One year later on January 1, 2021, Jinn Inc. retires the $100,000 bonds by repurchasing them in the market for $106,000. What is the amount of gain or loss on the retirement of the bonds? O $1,000 loss O $500 gain O $1,000 gain O $2,600 loss O $2,600 gain

On January 1, 2022, Gorski Corp. purchased $1,000,000, 10% bonds for $1,040,000. These bonds were to mature on January 1, 2032, but were redeemable at 101 any time after December 31, 2025. Interest was payable semiannually on July 1 and January 1. On July 1, 2027, Gorski sold all of the bonds. Bond premium was amortized on a straight-line basis. Gorski’s gain or loss in 2027 was: Select one: a. $30,000 loss b. $12,000 loss c. $10,000 gain d. $8,000 loss e. $12,000 gain

On January 2, 2020, Tamarisk Corporation issued $1,000,000 of 10% bonds at 96 due December 31, 2029. Interest on the bonds is payable annually each December 31. The discount on the bonds is also being amortized on a straight-line basis over the 10 years. (Straight-line is not materially different in effect from the preferable "interest method.") The bonds are callable at 101 (i.e., at 101% of face value), and on January 2, 2025, Tamarisk called $600,000 face value of the bonds and redeemed them. Ignoring income taxes, compute the amount of loss, if any, to be recognized by Tamarisk as a result of retiring the $600,000 of bonds in 2025. (Round answer to O decimal places, e.g. 38,548.) Loss on redemption $ Prepare the journal entry to record the redemption. (Round answers to O decimal places, e.g. 38,548. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent…

On January 1, 2020, Vaughn Corporation issued $5,480,000 of 10% bonds at 101 due December 31, 2029. Vaughn paid $75,000 in bond issue costs when the bonds were issue to the market. These will be amortized over the life of the bond. The premium on the bonds is also being amortized on a straight-line basis over the 10 years. (Straight-line is not materially different in effect from the preferable "interest method".) The bonds are callable at 105 (i.e., at 105% of face amount), and on January 2, 2025, Vaughn called one-half of the bonds and retired them. Ignoring income taxes, compute the amount of loss, if any, to be recognized by Vaughn as a result of retiring the $2,740,000 of bonds in 2025. Loss on redemption $ Prepare the journal entry to record the retirement. (If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually. List all debit entries before…