View Policies

Current Attempt in Progress

On January $2,2020,$ Sarasota Corporation issued $\backslash$$$1,200,000$ of $10\backslash \%$ bonds at $96$ 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 $101\backslash \%$ of face value$),$ and on January $2,2025,$ Sarasota called $\backslash (\backslash$$ $720,000\backslash )$ face value of the bonds and redeemed them.

Ignoring income taxes, compute the amount of loss, if any, to be recognized by Sarasota as a result of retiring the $\backslash$$$720,000$ of bonds in $2025.($Round answer to $0$ decimal places, e$.$g$.38,548.)$

Loss on redemption $\backslash$$

Prepare the journal entry to record the redemption. $($Round answers to $0$ 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 $2,2025$

Debit

Credit

eTextbook and Media

List of Accounts