Dott Manufacturing retired its $ 6,000,000 par value 7%, 10- year bonds early on February 28, 2012,

Question:

Dott Manufacturing retired its $ 6,000,000 7%, 10- year bonds early on February 28, 2012, for $ 6,720,408, including accrued interest of $ 70,000. The carrying value of the bonds at retirement was $ 6,330,956. What is the gain or loss on early retirement? Prepare the journal entry to record the derecognition of the obligation. Par Value
Par value is the face value of a bond. Par value is important for a bond or fixed-income instrument because it determines its maturity value as well as the dollar value of coupon payments. The market price of a bond may be above or below par,...