8-10 - E8-10 Loss on Constructive Retirement Issuer = P...

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Unformatted text preview: E8-10 Loss on Constructive Retirement Issuer = P 1/1/x2 1/1/x8 entire Inter co Bonds payable 500,000 100,000 Discount (50,000 x 4/10) (20,000) (4,000) Amort 5,000 1,000 12/31/x8 Balance (15,000) (3,000) Interest expense: 10,000 +1,000=11,000 1/1/x8 Loss: Bonds Payable (net ) of 96,000 retired for 108,000 = 12,000 Loss Interest expense = 11,000 versus interest income = 8,000 Difference= 3,000 Purchaser =S 1/1/x8 12/31/x8 Investment in Bonds Amort 8000/4= Balance Interest Income: 108,000 2,000 106,000 10,000-2,000=8,000 Eliminating entries, December 31, 20X8: E(1) Bonds Payable Interest Income Loss on Bond Retirement Investment in Apple Corporation Bonds Discount on Bonds Payable Interest Expense Interest Payable Interest Receivable 100,000 8,000 12,000 106,000 3,000 11,000 5,000 5,000 E(2) Eliminating entries, FOR December 31, 20X9: Bonds Payable Interest Income Retained Earnings Investment in Apple Corporation Bonds Discount on Bonds Payable Interest Expense Interest Payable Interest Receivable 100,000 8,000 9,000 104,000 2,000 11,000 5,000 5,000 ...
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This note was uploaded on 04/18/2008 for the course ACCT cost taught by Professor Staff during the Spring '08 term at Oklahoma State.

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8-10 - E8-10 Loss on Constructive Retirement Issuer = P...

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