Bond retirement-gain or loss

Assignment Help Accounting Basics
Reference no: EM13158469

On February 1, 2008, Pat Weaver Inc. (PWI) issued 10%, $1,000,000 bonds for $1,116,000. PWI retired all of these bonds on January 1, 2009, at 102. Unamortized bond premium on that date was $92,800. How much gain or loss should be recognized on this bond retirement?

Reference no: EM13158469

Questions Cloud

Knowledge of goodness : Take a position of Socrates' claim that knowledge of goodness is necessary to leading a "good" life, and that no one ever voluntarily chooses evil. Support your position with examples.
Why are you normally required to bind a service : What steps need to be taken by a network service to be ready to receive TCP/IP connections? Why are you normally required to bind a service to a specific port?
What is the total cost of producing units : A firm has a fixed cost of $200 in its first year of operation. When the firm produces 99 units of output, its total costs are $4,000. The marginal cost of producing the 100th unit of output is $700. What is the total cost of producing 100 units?
Analyze the direction of changes in monetary policy : The Effects of the Great Recession on the Central Banks Doctrine and Practice, critically and briefly analyze the direction of changes in monetary policy
Bond retirement-gain or loss : On February 1, 2008, Pat Weaver Inc. (PWI) issued 10%, $1,000,000 bonds for $1,116,000. PWI retired all of these bonds on January 1, 2009, at 102. Unamortized bond premium on that date was $92,800. How much gain or loss should be recognized on thi..
How much should he invest if the rate of interest : He will need to withdraw $12000 each year from the 21st to the 24th year of his son life. How much should he invest, if the rate of interest is 10% compounded annually?
Why is this beneficial to the paging algorithm : Why is this beneficial to the paging algorithm and the performance of the system?
Critcal essay-two works of literature : Write a critcal essay in which you discuss  TWO WORKS OF LITERATURE  you have read from the particular perspective of the statement that is provided for you in the critical lens essay.
Does this make economic sense : Does this make economic sense? Explain the rationale behind equal prices for unequal distances in air travel using supply, demand, and cost curves.

Reviews

Write a Review

Accounting Basics Questions & Answers

  House of reps and tax legislation

The committee which is responsible for holding hearings on tax legislation for the House of Representatives is the

  Automating the insertion process

A manual insertion process takes 30 minutes and eight pounds of material to produce a product. Automating the insertion process requires 15 minutes of machine time and 7.5 pounds of material.

  Expect the stock to trade immediately

On September 1, 2005, Saturn Corporation's common stock was selling at a market price of $300 per share. On that date, Saturn announced a 3 for 2 stock split. At what price would you expect the stock to trade immediately after the split goes into ..

  Computing free cash flow

During 2006, NICO Corporation had EBIT of $100,000, a change in net fixed assets of $400,000, an increase in net current assets of $100,000, an increase in spontaneous current liabilities of $400,000, a depreciation expense of $50,000, and a tax r..

  Manufacturing overhead budget by quarters

For Savage Inc. variable manufacturing overhead costs are expected to be $20,000 in the first quarter of 2005 with $2,000 increments in each of the remaining three quarters. Fixed overhead costs are estimated to be $35,000 in each quarter. Prepare..

  Problem related to stock or bond mutual fund

Mutual Funds What is the function of a mutual fund? Why are mutual funds popular among investors? How does a money market mutual fund differ from a stock or bond mutual fund?

  Calculate and journalize the foreign exchange

An error was discovered during 2007. Specifically, depreciation expense was understated in 2005 resulting in the need for a Prior Period Adjustment of $25,000 before taxes.

  Adjusting entry for uncollectibles

Wecker Company's year-end unadjusted trial balance shows accounts receivable of $89,000, allowance for doubtful accounts of $500 (credit), and sales of $270,000. Uncollectibles are estimated to be 1.5% of accounts receivable. a) Prepare the Decemb..

  Please explain the nuances of the $25,000 rule?

Is rental real estate subject to the Passive Loss limitations? Are there any important exceptions?

  Determining gain and loss on redemption

Dance Company has $250,000 of bonds outstanding. The unamortized premium is $3,600. If the company redeemed the bonds at 101, what would be the gain or loss on the redemption?

  Tax bases in the shares

Given the income statement above, what are their tax bases in their shares at the end of year 1?

  Percentage-of-completion and completed-contract methods

When comparing the percentage-of-completion and completed-contract methods of accounting for long-term construction contracts, both methods will report the same:

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd