The December 31, 2010, balance sheet of Hess Corporation includes the following items: 9% bonds...
80.2K
Verified Solution
Link Copied!
Question
Accounting
The December 31, 2010, balance sheet of Hess Corporation includes the following items:
9% bonds payable due December 31, 2019 $1,000,000
Unamortized premium on bonds payable 27,000
The bonds were issued on December 31, 2009, at 103, with interest payable on July 1 and December 31 of each year. Hess uses straight-line amortization. On March 1, 2011, Hess retired $400,000 of these bonds at 98 plus accrued interest.
What should Hess record as a gain on retirement of these bonds? Ignore taxes.
a. $18,800.
b. $10,800.
c. $18,600.
d. $20,000.
The answer is =
1027000 - (27000/18 x 2/6) =$410,600
410600 ($400,000 .98) = $18,600. Why?
Get Answers to Unlimited Questions
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
Membership Benefits:
- Unlimited Question Access with detailed Answers
- Zin AI - 3 Million Words
- 10 Dall-E 3 Images
- 20 Plot Generations
- Conversation with Dialogue Memory
- No Ads, Ever!
- Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Other questions asked by students
StudyZin's Question Purchase
1 Answer
$0.99
(Save $1 )
One time Pay
- No Ads
- Answer to 1 Question
- Get free Zin AI - 50 Thousand Words per Month
Unlimited
$4.99*
(Save $5 )
Billed Monthly
- No Ads
- Answers to Unlimited Questions
- Get free Zin AI - 3 Million Words per Month
*First month only
Free
$0
- Get this answer for free!
- Sign up now to unlock the answer instantly
You can see the logs in the Dashboard.