A $294,000 bond was redeemed at 98 when the carrying amount of the bond was $286,650. The entry to record the redemption would include aOa. gain on bond redemption of $1,470.Ob. gain on bond redemption of $7,350.Oc. loss on bond redemption of $7,350.Od. loss on bond redemption of $1,470.

Proceeds from redemption = $294,000 * 98/100 = $288,120

A $294,000 bond was redeemed at 98 when the carrying amount of the bond was $286,650. The entry to record the redemption would include a Ca. gain on bond redemption of $1,470. Ob. gain on bond redemption of $7,350. Oc. loss on bond redemption of $7,350. Od. loss on bond redemption of $1,470.

A $294,000 bond was redeemed at 98 when the carrying amount of the bond was $286,650. The entry to record the redemption would include a Ca. gain on bond redemption of $1,470. Ob. gain on bond redemption of $7,350. Oc. loss on bond redemption of $7,350. Od. loss on bond redemption of $1,470.

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter13: Long-term Liabilities

Section: Chapter Questions

Problem 17MC: Huang Inc. issued 100 bonds with a face value of $1,000 and a 5-year term at $960 each. The journal...

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Question

A $294,000 bond was redeemed at 98 when the carrying amount of the bond was $286,650. The entry to record the redemption would include a
Oa. gain on bond redemption of $1,470.
Ob. gain on bond redemption of $7,350.
Oc. loss on bond redemption of $7,350.
Od. loss on bond redemption of $1,470.

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