Question

1. At December 31, 2022, the following balances existed for MICPA Corporation: Bonds Payable (6%) $600,000...

1.

  1. At December 31, 2022, the following balances existed for MICPA Corporation:

Bonds Payable (6%)

$600,000

Discount on Bonds Payable

50,000

The bonds mature on 12/31/28. Straight-line amortization is used.

If 60% of the bonds are retired at 104 on January 1, 2025, what is the gain or loss on early extinguishment?

Answer

$_______________

2.

On April 1, 2020, Sydney Company issued 300 $1,000 bonds at 98. Each bond was issued with two detachable stock warrants. Shortly after issuance, the bonds were selling at 96, and the warrants were selling for $50 each.

Instructions:

Prepare the entry to record the issuance of the bonds and warrant

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