152. A company has 10%, 20-year bonds outstanding with a par value of $500,000. The company calls the bonds at 96 when the unamortized discount is $24,500. Calculate the gain or loss on the retirement of these bonds.
153. A company previously issued $2,000,000, 10% bonds, receiving a $120,000 premium. On the current year's interest date, after the bond interest was paid and after 40% of the total premium had been amortized, the company purchased the entire bond issue on the open market at 98 and retired it. Prepare the journal entry to record the retirement of these bonds.
154. On January 1, 2010, a company borrowed $50,000 cash by signing a 7% installment note that is to be repaid with 5 annual end-of-year payments, the first of which is due on December 31, 2010.
(a) Prepare the company's general journal entry to record the note's issuance.
(b) Assume that the annual payments are to consist of accrued interest plus equal amounts of principal. Prepare the general journal entries to record the first and second installment payments.