Ask Question
10 January, 22:04

Bonds Payable has a balance of $928,000 and Discount on Bonds Payable has a balance of $11,136. If the issuing corporation redeems the bonds at 98, what is the amount of gain or loss on redemption?

a.$11,136 loss

b.$7,424 loss

c.$7,424 gain

d.$11,136 gain

+5
Answers (1)
  1. 11 January, 01:24
    0
    c.$7,424 gain

    Explanation:

    Book value of bonds payable:

    Par value of bonds payable $928,000

    Less: Discount on bonds payable $11,136

    Book value of bondds payable $916864

    Redemption value of bonds ($928,000*98%) $909440

    Gain on Redemption of bonds $7424

    Therefore, The amount of gain or loss on redemption is $7424.
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “Bonds Payable has a balance of $928,000 and Discount on Bonds Payable has a balance of $11,136. If the issuing corporation redeems the ...” in 📙 Business if there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Search for Other Answers