### What was amount of gain or loss on retirement of bonds

Assignment Help Cost Accounting
##### Reference no: EM13214767

On March 31, 20011, Hanson Corporation sold &9000000 of its 8%, 10-year bonds for \$8653500 including accrued interest. The bonds were dated January 1, 20011. Interest is paid semiannually on January 1 and July 1. On April 1, Hanson purchased 1/2 of the bonds on the open market at 99 plus accrued interest and canceled them. Hanson used the straight line method for amortization of bond premiums and discounts.

a) what was the amount of the gain or loss on retirement of the bonds
b ) prepare the journal entry needed at April 1, 2015 to record retirement of the bonds
assume that interest and premium or discount amortization have been recorded through January 1, 2015 .Record interest and amortization on only the bonds retired.
c) prepare the journal entry needed at july 1,2015 to record interest and premium or discount amortization

#### Questions Cloud

 Define investment bankers expect to exercise the option : The investment bankers expect to exercise the option and purchase the 300,000 shares in exactly one year, when the stock price is fore-casted to be \$4.50 per share. However, there is a chance that the stock price will actually be \$10.00 per share .. How much must it pay for each hour it uses its capital : If the George Firm is minimizing costs, its RTS is 1.5, and it pays its workers \$30 per hour, how much must it pay for each hour it uses its capital? What are the shareholders trying to accomplish : Anaconda Ltd. has substantial earnings and profits and appreciated assets. It adopts a plan of complete liquidation and distributes its assets to its shareholders. Soon thereafter, the shareholders transfer the assets to a new corporation Graph the two-period budget constraint for consumption : The government modifies the consumption tax somewhat so that the first \$20k of consumption in each period is tax free. Now graph the budget constraint. What was amount of gain or loss on retirement of bonds : The bonds were dated January 1, 20011. Interest is paid semiannually on January 1 and July 1. On April 1, Hanson purchased 1/2 of the bonds on the open market at 99 plus accrued interest and canceled them. Explain what is the equivalent annual cost of the washer : What is the equivalent annual cost of the washer, if the firm uses straight-line depreciation? (Do not round intermediate calculations. Round your answer to 2 decimal places.) Describe the levels of uncertainty : Describe the levels of uncertainty and complexity for the project and determine what the project manager should communicate to the customers about the project unknowns. Prepare statement of cash flows for metagrobolize industries : Comparative balance sheets for 2013 and 2012 and a statement of income for 2013 are given below for Metagrobolize Industries. Additional information from Metagrobolize's accounting records is provided also. METAGROBOLIZE INDUSTRIES Explain what is the future value of investment cash flows : If the appropriate interest rate is 8.16 percent, what is the future value of these investment cash flows six years from today?

### Write a Review

#### Determine the basic and diluted earnings per share

Determine the basic and diluted earnings per share values for year ending 31 st December, 2011. Austin has compiled the information given below.

#### Compute the percentage change in income in each case

Prepare a schedule showing the Dutch subsidiary's income statement for 2011 and 2012 in euros and in dollars, using both the current rate and temporal methods. Compute the percentage change in income in each case.

#### Evaluate the balances - consolidated financial statements

For consolidated financial statements for 2011, evaluate the balances that would appear for the subsequent accounts: (1) Buildings (net), (2) Operating expenses, and (3) Non-controlling Interest in Subsidiary's Net Income.

#### What is activity-based management

What is activity-based management? What is a non-value added activity and how much did non value-added activities cost ReadersNet.Com this past year?

#### Evaluate the overhead rates for dept a and b

Evaluate the overhead rates for Dept A and B and evaluate the contract cost using the rates is in question 1 and the subsequent information

#### Find what is the net present value of investment

Find what is the net present value of this investment and evaluate the internal rate of return?

#### What is meant by the terms relevant

What is meant by the terms relevant and irrelevant costs and revenues in Strategic Management Accounting decision making? Include several small numerical examples in your answer.

#### What interest rate could indifferent between two projects

What interest rate could company be indifferent between two projects? Which project is better if needed return is above this interest rate and why?

#### Net asset balance of the subsequent categories

Explain what could be the reported net asset balance of the subsequent categories during 2011: permanent restricted, temporarily restricted, unrestricted

#### Find the break points associated with each source

Find the break points associated with each source of capital and use them to specify each of the ranges of total new financing over which the firm's WACC remains constant.

#### Prepare journal entries to record the closing-out of balance

Prepare the journal entries to record the closing-out of the balance in manufacturing overhead to the appropriate accounts, and show any necessary calculations in the notes of the journal entry.

#### Find effect will the trashing option

Consider the alternative to trashing is choosing the more profitable of the two alternatives (that the new employee looked at and did not like). Find effect will the trashing option (that the new employee wants) have on net income