What was the amount of the gain or loss on retirement

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on march 31, 2009 ,hanson corporation sold &7000000 of its 8%,10-year bonds for $6730500 including accrued interest. the bonds were dated january 1, 2009. interest is paid semiannually on january 1 and july 1. on April 1, hanson purchased 1/2 of the bonds on the open market at 99 plus accrued interest and canceled them.hanson used 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: EM13131302

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