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Ch. 14, Q. 4 Question 4 View Policies Current Attempt in Progress On...

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Accounting

Ch. 14, Q. 4

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Question 4 View Policies Current Attempt in Progress On January 2, 2015, Headland Corporation issued $2,000,000 of 10% bonds at 99 due December 31, 2024. 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 102 (ie, at 10296 of face amount), and on January 2 2020, Headland called $1,200,000 face amount of the bonds and redeemed them Ignoring income taxes, compute the amount of loss, if any, to be recognized by Headland as a result of retiring the $1,200,000 of bonds in 2020. (Round answer to decimal ploeges 38.548.) Loss on redemption $ Prepare the journal entry to record the redemption (Round answers to decimal places, 34,548. If no entry is required, select "No Entry for the account titles and center for the amounts Crudit account titles are automatically indented when amount is entered. Do not indent manually) Date Account Titles and Explanation Debit Credit January 2, 2020

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