Question: At the bninning of the current year, two bond issues (Simmons Industries 7% 20-year bonds and the Hunter Corporation 8% 10-year bonds) weere outstanding. During the year, the Simmons Industries bonds were redeemed and a significant loss on the redemption of bonds was reported as an extraordinary item on the income statement. At the end of the year, the hunter corporation bonds were reported as a nocurrent liability. the maturity date on the Hunter Corporations bonds was early in the following year.
Identify the flaws in the reporting practices related to the two bond issues.