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Accounting for bonds retired between interest payment dates using common stock and realizing a loss on the redemption of the bonds, example Corp-A issued $1,500,000 of 11%, 15-year bonds at 97 (97%) on (4/1/20X1), on (3/1/20X2) bonds of par value of $600,000 are retired by issuing 20,000 shares of its $10 par common stock plus accrued interest paid, C/S was selling for $31/share, interest is payable semi-annually on (4/1) and (10/1) on Bonds Corp-A uses the Straight-Line Method of amortization for bond premium or discount, calculate the remaining amortization on the bonds being retired, compare the reacquisition cost (market value of stock issued in this example) with the bonds carrying amount, if paid more to retire the bonds than the carrying amount a loss is realized, common stock is issued, detailed accounting by Allen Mursau
