On January 1, 2015, Sheridan Industries Inc. issued a $1,016,000, 10-year bond. The bond sold at 95 and paid 12% interest each January 1 and July 1. Sheridan was recalled at 106 and canceled the bond on January 1, 2020. Assume the company used the straight-line method of amortization.

1). Calculate the gain or loss on redemption.

2). Prepare the journal entry to record the early retirement of the bond.

Answer rating: 100% (QA)

a To calculate the loss on redemption we first need to calculate the number of bo... View the full answer