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Friedman Company had bonds outstanding with a matu...

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Friedman Company had bonds outstanding with a maturity value of $500,000. On April 30, 2013, when these bonds had an unamortized discount of $10,000, they were called in at 104. To pay for these bonds, Friedman had issued other bonds a month earlier bearing a lower interest rate. The newly issued bonds had a life of 10 years. The new bonds were issued at 103 (face value $500,000). Issue costs related to the new bonds were $3,000. Ignoring interest, compute the gain or loss. (Round answers to 0 decimal places, e.g. $38,548.) Loss on redemption of bonds $ Ignoring interest, record this refunding transaction. (Round answers to 0 decimal places, e.g. $38,548. Credit account titles are automatically indented when amount is entered. Do not indent manually.) No. Account Titles and Explanation Debit Credit (a) (To record redemption of bonds payable.) (b) (To record issuance of new bonds.)

 

Paper#11001 | Written in 18-Jul-2015

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