Question

A $600,000 bond was retired at 103 when the carrying value of the bond was $622,000. The entry to record the retirement would include a

Answer 1

Answer:

Gain on bond redemption of $4,000.

Explanation:

Based on the information given The appropriate journal entry to record the retirement would include a GAIN ON BOND REDEMPTION of $4,000

Gain on bond redemption of $4,000

[$622,000-($600,000*1.03)]

($622,000-$618,000)

=$4,000