Vaughn Company had bonds outstanding with a maturity value of $312,000. On April 30, 2017, when these bonds had an unamortized discount of $11,000, they were called in at 105. To pay for these bonds, Vaughn 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 $312,000). Ignoring interest, compute the gain or loss. Loss on redemption $ __________________
b. Ignoring interest, record this refunding transaction.
-record redemptions of bonds payable
-record issuance of new bonds