Batumi1987
Apr 24, 2009, 10:20 AM
Here is a question!
The 31 dec 2004, balance sheet of dodge corporation was:
9% bonds payable due 2013 dec 31-------1,400,000
Unamortized premium----------------------37800
The bonds were issued on dec 31, 2003, at 103, with interest payable on July 1 and December 31. Dodge is using straight-line amortization.
On march 1, 2005, DODGE retired 560,000 of bonds at 98 plus accrued interest.
WHAT SHOULD DODGE RECORD AS A GAIN ON RETIREMENT OF THIS BOND?
a.26320
b.15120
c.26040
d.28000
And 2nd
On October 1, 2004, lyman co, purchased to lod to maturity, 300, 1000, 9% bonds for 312000, an additional 19000 was paid for accrued interest, interest is paid semiannyally on decemer 1 and June 1 and the bonds mature on December 1, 2008, lyman uses straight-line amortization, ignoring taxes, the amount reported in Lymans' 2004 income statement from this investment should be
a. 6750
b.6030
c. 7470
d.8190
Thanks in advance :)
The 31 dec 2004, balance sheet of dodge corporation was:
9% bonds payable due 2013 dec 31-------1,400,000
Unamortized premium----------------------37800
The bonds were issued on dec 31, 2003, at 103, with interest payable on July 1 and December 31. Dodge is using straight-line amortization.
On march 1, 2005, DODGE retired 560,000 of bonds at 98 plus accrued interest.
WHAT SHOULD DODGE RECORD AS A GAIN ON RETIREMENT OF THIS BOND?
a.26320
b.15120
c.26040
d.28000
And 2nd
On October 1, 2004, lyman co, purchased to lod to maturity, 300, 1000, 9% bonds for 312000, an additional 19000 was paid for accrued interest, interest is paid semiannyally on decemer 1 and June 1 and the bonds mature on December 1, 2008, lyman uses straight-line amortization, ignoring taxes, the amount reported in Lymans' 2004 income statement from this investment should be
a. 6750
b.6030
c. 7470
d.8190
Thanks in advance :)