MJB Ltd. sold $6,580,000 of 10% bonds, which were dated March 1, 2023, on June 1,...

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MJB Ltd. sold $6,580,000 of 10% bonds, which were dated March 1, 2023, on June 1, 2023. The bonds paid interest on September 1 and March 1 of each year. The bonds' maturity date was March 1, 2033, and the bonds were issued to yield 12%. MJB's fiscal year-end was February 28, and the company followed IFRS. On June 1, 2024, MJB bought back $2,580,000 worth of bonds for $2,480,000 plus accrued interest. Your answer is partially correct. Using 1. a financial calculator, or 2. Excel function PV, calculate the issue price of the bonds and prepare the entry for the issuance of the bonds. Hint: Use the account Interest Expense in your entry). (Round answer to O decimal places, e.g. 5,275. Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. List all debit entries before credit entries.) Account Titles and Explanation Cash Debit Credit Bonds Payable Interest Expense MJB Ltd. sold $6,580,000 of 10% bonds, which were dated March 1, 2023, on June 1, 2023. The bonds paid interest on September 1 and March 1 of each year. The bonds' maturity date was March 1, 2033, and the bonds were issued to yield 12%. MJB's fiscal year-end was February 28, and the company followed IFRS. On June 1, 2024, MJB bought back $2,580,000 worth of bonds for $2,480,000 plus accrued interest. Your answer is partially correct. Using 1. a financial calculator, or 2. Excel function PV, calculate the issue price of the bonds and prepare the entry for the issuance of the bonds. Hint: Use the account Interest Expense in your entry). (Round answer to O decimal places, e.g. 5,275. Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. List all debit entries before credit entries.) Account Titles and Explanation Cash Debit Credit Bonds Payable Interest Expense

Answer rating: 100% (QA)

To calculate the issue price of the bonds we can use the present value PV formula The formula is PV ... View the full answer