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Redemption of a Bond at Maturity
On March 31, 2014, Sammonds Inc. issued $250,000 face value bonds at a discount of $7,000. The bonds were retired at their maturity date, March 31, 2024.
Required:
Assuming that the last interest payment and the amortization of the discount have already been recorded, calculate the gain or loss on the redemption of the bonds on March 31, 2024. Prepare the journal entry for the redemption of the bonds.
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