# How much did the company pay on January 1, 2017, to purchase the bonds that it retired?

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How much did the company pay on January 1, 2017, to purchase the bonds that it retired? 1 answer below » On January 1, 2011, Steadman issues \$350,000 of 10%, 15-year bonds at a price of 973⁄4. Six years later, on January 1, 2017, Steadman retires 20% of these bonds by buying them on the open market at 1041⁄2. All interest is accounted for and paid through December 31, 2016, the day before the purchase. The straightline method is used to amortize any bond discount. 1. How much does the company receive when it issues the bonds on January 1, 2011? 2. What is the amount of the discount on the bonds at January 1, 2011? 3. How much amortization of the discount is recorded on the bonds for the entire View complete question » On January 1, 2011, Steadman issues \$350,000 of 10%, 15-year bonds at a price of 973⁄4. Six years later, on January 1, 2017, Steadman retires 20% of these bonds by buying them on the open market at 1041⁄2. All interest is accounted for and paid through December 31, 2016, the day before the purchase. The straightline method is used to amortize any bond discount. 1. How much does the company receive when it issues the bonds on January 1, 2011? 2. What is the amount of the discount on the bonds at January 1, 2011? 3. How much amortization of the discount is recorded on the bonds for the entire period from January 1, 2011, through December 31, 2016? 4. What is the carrying (book) value of the bonds as of the close of business on December 31, 2016? What is the carrying value of the 20% soon-to-be-retired bonds on this same date? 5. How much did the company pay on January 1, 2017, to purchase the bonds that it retired? 6. What is the amount of the recorded gain or loss from retiring the bonds? 7. Prepare the journal entry to record the bond retirement at January 1, 2017. View less » Jul 24 2014 07:49 AM