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    SAPR's Avatar
    SAPR Posts: 1, Reputation: 1
    New Member
    		  
    #1

    Jan 14, 2009, 10:23 AM
    Bonds accounting issue
    Dear friends, could you help me solve this quiz:
    The December 31, 1998, balance sheet of Drabek Corporation includes
    The following items:

    9% bonds payable due December 31, 2007 $500,000
    Unamortized premium on bonds payable 13,500

    The bonds were issued on December 31, 1997, at 103, with interest
    Payable on July 1 and December 31 of each year. Drabek uses
    Straight-line amortization.
    On March 1, 1999, Drabek retired $200,000 of these bonds at 98 plus
    Accrued interest. What should Drabek record as an extraordinary
    Gain on retirement of these bonds? Ignore taxes.
    a. $9,400.
    b. $5,400.
    c. $9,300.
    d. $10,000.
    Curlyben's Avatar
    Curlyben Posts: 18,514, Reputation: 1860
    BossMan
    		  
    #2

    Jan 14, 2009, 10:57 AM
    Thank you for taking the time to copy your homework to AMHD.
    Please refer to this announcement: Ask Me Help Desk - Announcements in Forum : Homework Help
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