On January Waterway Corporation issued $ of bonds at due December Interest on the bonds is payable annually each December The discount 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 value and on January Waterway called $ face value of the bonds and redeemed them.
Ignoring income taxes, compute the amount of loss, if any, to be recognized by Waterway as a result of retiring the $ of bonds in Round answer to decimal places, eg
Loss on redemption
Prepare the journal entry to record the redemption. Round answers to decimal places, eg If no entry is required, select No Entry" for the account titles and enter 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.
