On January 1, 2021, Patty Company issued $840,000 of 8%, 10-year bonds for 97. Patty retired...

Question

Question

On January 1, 2021, Patty Company issued $840,000 of 8%, 10-year bonds for 97. Patty retired all of these bonds on January 1,

Answer 1

Answer #1

Solution :

Loss recognized on Bond Retirement

42,000

Journal entry

Bond Acount Dr 840,000

Loss on retairement Dr 42,000

To Discount A/c 25,200

To Bank 856,800

Answer 2

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