Exercise 14-15 Grouper Company had bonds outstanding with a maturity value of $311,000. On April 30, 2020, when these bonds had an unamortized discount of $11,000, they were called in at 105. To pay for these bonds, Grouper had issued other bonds a month earlier bearing a lower interest rate. The newly issued bonds had a life of 10 years. The new bonds were issued at 101 (face value $311,000). Ignoring interest, compute the gain or loss. Loss on redemption $ Ignoring interest, record this refunding transaction. (If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.) Account Titles and Explanation Debit Credit (To record redemption of bonds payable) (To record issuance of new bonds) Click if you would like to Show Work for this question: Open Show Work

Explanation:

         Re acquisition price = $311,000 x 105%= $326,550

Net carrying amount of bonds redeemed=( Par value $311,000-Unamortized discount (11,000) = 300,000

Loss on redemption = $326,550 -$300,000= $26,550

TO record redemption of bonds payable

Account                                               Debit              Credit

Bonds payable                               $311,000

Loss on redemption of bond          $26,550

Discount  on bonds payable                                         $11,000

 Cash                                                                              $326,550

TO record issuance of new bonds

 Cash= $311,000 x 101%=  $314,110

Premium of bonds payable =$314,110- $311,000=$3,110

Account                                               Debit              Credit

Cash                                               $314,110

Premium of bonds payable                $3,110

Bonds payable                                                          $311,000

answer; read and consider the content of the items;