Hi, I just wanted to confirm is my answer is correct (this is following IFRS). Here's the question:

Dec 31st, 2010 balance sheet of ABC Corp included the following items:
7.5% bonds payable due Dec 31, 2018 = $576,000

The bonds have a face value of $600,000 and were issued on Dec 31, 2008 at 95. Interest is payable semi-annually on June 30 and Dec 31. The company uses straight-line amortization. On April 1, 2011, ABC Corp retired $120,000 of these bonds at 101 plus accrued interest. Prepare journal entries to record the retirement. Show calcs and round values to nearest dollar.

Answer:
Bonds Payable DR $115,350
Loss on Redemption of Bonds DR $5,850
Cash CR $121,200

Calculations:

UNAMORTIZED DISCOUNT

Face value: $500,000
@ 95 : $570,000
Discount : $30,000 (total)

$30,000/20 periods = $1500/period amortized
Amortized discount = 1500 x 4 3/6 periods used (Dec 31/08~Apr 1/11) = $6750

Thus, unamortized discount - amortized = 30,000 - $6750 = 23,250
Multiply 23,250 x $120,000/600,000 [note: I assume we have to make a factor since 23,250 represents the unamortized discount for the entire 600,000 of bonds, is this right?]

This gives us unamortized discount for retirement of bonds of $4650.

LOSS ON RETIREMENT:

Reacquisition price: 120,000@101 = 121,200
Less: net carrying value of bonds redeemed
Face value - Unamortized discount = 120,000 - 4,650 = $115,350

Loss on retirement = 121,200 - $115,350 = $5,850

You did a great job on this. Thanks for showing your work. The only thing I would do differently is to show Bonds Payable and Discount on Bonds Payable separately.

Bonds Payable........................120,000
Loss on Sale of Bonds.................5,850
Cash.............................................. ........121,200
Discount on Bonds Payable.............................4,650

On your Balance Sheet, the Bonds Payable and Discount on Bonds Payable are netted. On your books, you would have them in separate accounts. Your calculations are correct. You should also show your journal entry to record accrued interest at 4/1/11 on the retired bonds.