EXERCISE 14-13 - 120,000 Unamortized Bond Issue Costs...

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EXERCISE 14-13 (15–20 minutes) Cash .......................................................................... ................................................................................... 6,860,000 Discount on Bonds Payable (.02 X $7,000,000) .... 140,000 Bonds Payable ............................................... 7,000,000 (To record issuance of 10% bonds) Bonds Payable ....................................................... 5,000,000 Loss on Redemption of Bonds ............................ 250,000 Cash ($5,000,000 X 1.02) .............................. 5,100,000 Discount on Bonds Payable
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Unformatted text preview: ....................... 120,000 Unamortized Bond Issue Costs. ................. 30,000 (To record retirement of 11% bonds) Reacquisition price. ............................................... $5,100,000 Less: Net carrying amount of bonds redeemed: Par value. .................................................... $5,000,000 Unamortized bond discount. ..................... (120,000) Unamortized bond issue costs. ................ (30,000 ) 4,850,000 Loss on redemption. ............................................. $ 250,000...
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