On January 2, 2020, Ayayai Corporation issued $1,750,000 of 10% bonds at 98 due December 31,...

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On January 2, 2020, Ayayai Corporation issued $1,750,000 of 10% bonds at 98 due December 31, 2029. Interest on the bonds is payable annually each December 31. The discount on the bonds is also being amortized on a straight-line basis over the 10 years. (Straight-line is not materially different in effect from the preferable "interest method.") The bonds are callable at 101 (i.e., at 101% of face value), and on January 2, 2025, Ayayai called $1,050,000 face value of the bonds and redeemed them. Ignoring income taxes, compute the amount of loss, if any, to be recognized by Ayayai as a result of retiring the $1,050,000 of bonds in 2025. (Round answer to O decimal places, e.g. 38,548.) Loss on redemption A Prepare the journal entry to record the redemption. (Round answers to O decimal places, e.g. 38,548. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually. List all debit entries before credit entries.) Date Account Titles and Explanation January 2, 2025 Bonds Payable Loss on Redemption of Bonds Discount on Bonds Payable Cash Debit 1050000 17500 Credit 7000 1060500 On January 2, 2020, Ayayai Corporation issued $1,750,000 of 10% bonds at 98 due December 31, 2029. Interest on the bonds is payable annually each December 31. The discount on the bonds is also being amortized on a straight-line basis over the 10 years. (Straight-line is not materially different in effect from the preferable "interest method.") The bonds are callable at 101 (i.e., at 101% of face value), and on January 2, 2025, Ayayai called $1,050,000 face value of the bonds and redeemed them. Ignoring income taxes, compute the amount of loss, if any, to be recognized by Ayayai as a result of retiring the $1,050,000 of bonds in 2025. (Round answer to O decimal places, e.g. 38,548.) Loss on redemption A Prepare the journal entry to record the redemption. (Round answers to O decimal places, e.g. 38,548. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually. List all debit entries before credit entries.) Date Account Titles and Explanation January 2, 2025 Bonds Payable Loss on Redemption of Bonds Discount on Bonds Payable Cash Debit 1050000 17500 Credit 7000 1060500