Solution-Indicate the income statement treatment of the

Indicate the income statement treatment of the gain or loss

Assignment Help Financial Accounting

Reference no: EM132754733

Question - Rubick Ltd. issued its 9%, 25-year mortgage bonds in the principal amount of ¥30,000,000 on January 2, 2005, at a discount of ¥2,722,992 (effective rate of 10%). The indenture securing the issue provided that the bonds could be called for redemption in total but not in part at any time before maturity at 104% of the principal amount, but it did not provide for any sinking fund.

On December 18, 2019, the company issued its 11%, 20-year debenture bonds in the principal amount of ¥40,000,000 at 102, and the proceeds were used to redeem the 9%, 25-year mortgage bonds on January 2, 2020. The indenture securing the new issue did not provide for any sinking fund or for retirement before maturity. The unamortized discount at retirement was ¥1,842,888.

Instructions -

a. Prepare journal entries to record the issuance of the 11% bonds and the retirement of the 9% bonds.

b. Indicate the income statement treatment of the gain or loss from retirement and the note disclosure required.

Reference no: EM132754733

Questions Cloud

How do find out the cash flow that investment must provide : Find out the cash flow that this investment must provide at the end of each of the final 2 years (year 4 and year 5), that is, find out the X?

Briefly define corporate social responsibility : Briefly define corporate social responsibility (CSR) in your own words. Find a current event in the past 1-2 years in which a business either went above.

Was action or were the actions ultimately good for company : Identify a large company and select a prominent or influential stakeholder associated with it. A stakeholder or stakeholders can be an individual.

Compute what value of company according to mm proposition : 6.5 percent and its unlevered cost of capital is 14 percent. What is the value of the company according to MM Proposition with taxes?

Indicate the income statement treatment of the gain or loss : Indicate the income statement treatment of the gain or loss from retirement and the note disclosure required

How many days are the various model on the lot prior to sale : Find How many days are the various models on the lot prior to sale? What model options are the top and bottom sellers? Huskie Motor Corporation case study

What are genes that influence behavior that might have been : What are genes that influence behavior that might have been beneficial during our evolution (thousands or millions of years ago) but might cause problems today?

What is the Net Income attributable to NCI : Based on the consolidated financial statements: (Cost method and partial goodwill), what is the Net Income attributable to NCI (non-controlling interest)

Developments in the forensic psychology field : Discuss specific ways that you could keep up with developments in the forensic psychology field.

User Account

All Pages

Indicate the income statement treatment of the gain or loss

Reference no: EM132754733

Reference no: EM132754733

Questions Cloud

Reviews

Write a Review

Financial Accounting Questions & Answers

Financial statement analysis and preparation

Shareholder of a company

Financial and accounting principles

Prepare a statement of cash flow using the direct method

Financial accounting assignment

Prepare general journal entries for goela

Principles of financial accounting

Prepare general journal entries to record the transactions

Global reporting initiative

Explain the iasb conceptual frameworks

Determine the company''s financial statements

Computation of free cash flow

Assured A++ Grade

Academics

Major Subjects

Majors

Get In Touch

TERMS & POLICIES

HELP & SUPPORT