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 :)

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Quote:

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Originally Posted by Justwantfair

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I am first time here, I did not know, please make exception or give me the link where can I ask?

We don't make exceptions just because you happen to be new. Its' YOUR work and it's unethical to expect someone else to do it for you. Nor would I give a link for the same reason.

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