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On January 2, 2020, Peari Corporation issued $1,350,000 of 10% bonds at 99 due December...

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Accounting

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On January 2, 2020, Peari Corporation issued $1,350,000 of 10% bonds at 99 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 102 (i.e, at 102% of face value), and on January 2, 2025. Pearl called $810,000 face value of the bonds and redeemed them. Ignoring income taxes, compute the amount of loss, if any, to be recognized by Pearl as a result of retiring the $810,000 of bonds in 2025. (Round answer to 0 decimal places, es. 38,548) Loss on redemption Prepare the journal entry to record the redemption. (Round answers to 0 decimol places, eg. 38, 548. If no entry is required, select "No Entry for the occount titles and enter 0 for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually. List alf debit entries before credit entries.)

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