On march 31 2209 hanson corporation sold 7000000 of its 8

Reference no: EM13590069

On March 31, 2209, Hanson Corporation sold $7,000,000 of its 8%, 10 year bonds for $6,730,500 including accrued interest. The bonds were date January 1, 2009. interest is paid semiannually on January 1 and July 1. On April 1, 2013, Hanson purchased 1/2 of the bonds on the open market at 99plus accrued interest and canceled them. Hanson uses 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 1,2013 to record retirement of the bonds. Assume that interest and premium or discount amortization have been recorded through January 1,2013. Record interest and amortization on only the bonds retired.

C.) Prepare the journal entry needed at July 1,2013 to record interest and premium or discount amortization.

Reference no: EM13590069

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