On January Sheffield Corporation issued $ of bonds at due December Interest on the bonds is payable annually each December The discount on the bonds is also being amortized on a straightline basis over the years. Straightline is not materially different in effect from the preferable "interest method."
The bonds are callable at ie at of face value and on January Sheffield called $ face value of the bonds and redeemed them.
Ignoring income taxes, compute the amount of loss, if any, to be recognized by Sheffield as a result of retiring the $ of bonds in Round answer to decimal places, eg
Loss on redemption
$
Prepare the journal entry to record the redemption. Round answers to decimal places, eg 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. Llst all debit entries before credit entrles.
Date Account Titles and Explanation
January
