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On January 1, 2012, J & J Corp. issued 1,000 of its 10%,$1,000 bonds for $1,040,000. These bonds were to mature on January1, 2022 but were callable at 101 any time after December 31, 2014.Interest was payable semiannually on July 1 and January 1. On July1, 2015, J & J called all of the bonds and retired them. Bondpremium was amortized on a straight-line basis. Before incometaxes, J & J's gain or loss in 2015 on this earlyextinguishment of debt was how much?

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On January 1, 2008, Pear Corp. issued 3,000 of its 6%, $1,000bonds for $2,080,000. These bonds were to mature on January 1,2018, but were callable at 103 any time after December 31, 2011.Interest was payable semiannually on July 1 and January 1. On July1, 2013, Pear Corp. called all of the bonds and retired them. Thebond premium discount was amortized on a straight-line basis.Prepare the journal entry to record this earlyextinguishment ofdebt.

Note: For each line item of the journal entry write whether itis a Dr. or Cr., the account name, and amount.

Bonds issued at a premium. On January 1, 20x2, Jury Corp. issued$100,000 of $1,000 face value, 12%, 10 year bonds. The bonds payinterest annually, each December 31. On the date of issuance, themarket rate of interest was 10%. Jury uses the effective interestmethod to calculate and report interest expense on the bonds.Required:

a. Calculate the issue price of the bonds.

b. Record the issuance of the bonds.

c. Construct a loan amortization schedule for the bonds (PLEASEmake sure this table balances. I have submitted this question twiceand the table never balances. If the table does not balance, thepremium amortized is not corect. The book value at the end should=100,000 and the amoritzation of the premium at the end should = theoriginal amount of the premium).

d. Make all journal entries related to the bond issue for theyears 2002 and 2003.

e. Jury called the bonds on May 1, 20x4 at 103. Record the earlyextinguishment of debt.

f. What would the gain or loss be on the bonds that were calledon May 1, 20x4, if Jury had been using the straight-line method tocalculate interest expense? Record the early extinguishment of debtunder this assumption.

Could anyone provide the solutions to problem E. 6-3 for the 5th edition of Government & Not-for-Profit Accounting Concepts & Practices by authors Michael H. Granof and Saleha B. Khumawala?

Construction and debt transactions can affect more than one fund.

During 2012 Luling Township engaged in the following transactions related to modernizing the bridge over the Luling river. The township accounts for long-term construction projects in a capital projects fund.

-On July 1 it issues 10-year, 4 percent bonds with a face value of $1 million. The bonds were sold for $1,016,510, an amount the provides an annual yield of 3.8% (semiannual rate of 1.9%). The city incurred $10,000 in issue costs.

-On August 1 it was awarded a state reimbursement grant for $800,000. During the year it incurred allowable costs of $600,000. Of these it paid $500,000 in cash to various contractors. It received $450,000 from the state, expecting to receive, early in 2013, the $150,000 difference between allowable incurred and cash received. Moreover, it expects to receive the balance of the grant later in 2013.

-It invested the bond proceeds in the short-term federal securities. During the year it received $8,000 in interest and at year-end the market value of the securities was $1,000 more than the township had paid for them.

-It transferred the bond premium (net of issue costs) to an appropriate fund.

-It transferred $20,000 from the general fund to an appropriate fund to cover the first payment of bond interest which was due, and paid, on December 31.

-On January 1, the township defeased in substance $400,000 of bonds that had been issued years earlier to construct the bridge. The bonds had been issued at par. To effect the transaction the township issued $405,000 of new bonds, at par, and placed the proceeds in a trust. The old bonds have a coupon rate of 5%; the new bonds have a coupon rate of 4%.

What amount should Luling report in its December 31, 2012, financial statements as:

1. Nonreciprocal transfers-in to its debt service fund

2. Interest expenditure in its debt service fund.

3. Interest expense on its government-wide statements (after taking into account amortization of the bond premium).

4. Investment revenue in its capital projects fund.

5. Bonds payable in its capital projects fund.

6. Total expenditures in its capital projects fund.

7. Bond proceeds in its capital projects Fund.

8. Bond proceeds in its debt service fund

9. Loss on defeasance inits debt service fund

10. Grant revenue in its capital projects fund

11. Grants receivable in its capital projects fund

12. Carrying value of bonds payable (on issue of July 1 only) in its government wide statements.

Select each response from the amounts that follow. An amount may be selected once, more than once, or not at all.

A. $0

B.$8,000

C. $$9,000

D. $16,510

E. $19,314

F. $20,000

G. $26,510

H. $38,627

I. $150,000

J. $200,000

K. $400,000

L. $405,000

M. $500,000

N. $600,000

O. $610,000

P. $1,000,000

Q. $1,006,510

R. $1,016,510

S. $1,015,824

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