On January Novak Corporation issued $ of bonds at due December Novak paid $ in bond issue costs when the bonds were issue to the market. These will be amortized over the life of the bond. The premium on the bonds is also being amortized on a straightline basis over the years. Straightline is not materially different in effect from the preferable "interest method".
The bonds are callable at ie at of face amount and on January Novak called onehalf of the bonds and retired them.
Ignoring income taxes, compute the amount of loss, if any, to be recognized by Novak as a result of retiring the $ of bonds in
Loss on redemption
$
Prepare the journal entry to record the retirement. 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.
