Question: At the beginning of the current year two bond issues Putnam
At the beginning of the current year, two bond issues (Putnam Industries 5% 10-year bonds and Rucker Corporation 6% five-year bonds) were outstanding. During the year, the Putnam Industries bonds were redeemed and a significant loss on the redemption of bonds was reported as an extraordinary item on the income statement. At the end of the year, the Rucker Corporation bonds were reported as a noncurrent liability. The maturity date on the Rucker Corporation bonds was early in the following year. Identify the flaws in the reporting practices related to the two bond issues.
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