SaraAccounting
May 9, 2008, 08:31 AM
The December 31, 2004, balance sheet of Dodge Corporation includes the following items:
9% bonds payable due December 31, 2013 $1,400,000
Unamortized premium on bonds payable 37,800
The bonds were issued on December 31, 2003, at 103, with interest payable on December 31 of each year. Dodge uses straight-line amortization.
On December 31, 2005, Dodge retired these bonds at 98 . What should Dodge record as a gain or loss on retirement of these bonds?
9% bonds payable due December 31, 2013 $1,400,000
Unamortized premium on bonds payable 37,800
The bonds were issued on December 31, 2003, at 103, with interest payable on December 31 of each year. Dodge uses straight-line amortization.
On December 31, 2005, Dodge retired these bonds at 98 . What should Dodge record as a gain or loss on retirement of these bonds?