At the beginning of the current year, two bond issues (Simmons Industries 7% 20-year bonds and Hunter Corporation 8% 10-year bonds) were outstanding. During the year, the Simmons Industries bonds were...

At the beginning of the current year, two bond issues (Simmons Industries 7% 20-year bonds and Hunter Corporation 8% 10-year bonds) were 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 noncurrent liability. The maturity date on the Hunter Corporation bonds was early in the following year.

Identify the flaws in the reporting practices related to the two bond issues.