On September $30,2023,$ ?Cullumber Inc. issued $$3,120,000$ ?of $10-$year, $8\%$ ?convertible bonds for $$3\mathrm{.}494,400.$ ?The bonds pay interest on March $31$ ?and September $30$ ?and mature on Lo September $30,2033.$ ?Each $$1,000$ ?bond can be converted into $80$ ?no par value common shares. In addition, each bond included $20$ ?detachable warrants. Each warrant can be used to purchase one common share at an exercise price of $$15.$ ?Immediately after the bond issuance, the warrants traded at $$3$ ?each. Without the warrants and the conversion rights, the bonds would have been expected to sell for $$3,182,400.$ ?On March $23,2026,$ ?half of the warrants were exercised. The common shares of Cullumber were trading at $$20$ ?each on this day. Immediately after the payment of interest on the bonds, on September $30,2028,$ ?all bonds outstanding were converted into common shares. Assume the entity follows IFRS.

Prepare a bond amortization schedule from September $30,2023,$ ?to September $30,2028,$ ?using the effective interest rate of $3\mathrm{.}8547\%.$Prepare a bond amortization schedule from September $30,2023,$ ?to September $30,2028,$ ?using the effective interest rate.

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Prepare a bond amortization schedule from September 30, 2023, to September 30, 2028, using the effective interest rate. (Round answers to O decimal places, e.g. 5,275.) Cash Paid Schedule of Bond Premium Amortization Effective Interest Method Effective Interest Premium Amortized $ Carrying Amount 3,494,400 $ 124,800 $ 124,800 124,800 +A $ -55,257 3,663,452 70,608 -54,192 3,717,644 124,800 71,652 -53,148 3,770,792 124,800 72,676 -52,124 3,822,916 124,800 73,681 -51,119 3,874,035 124,800 74,666 -50,134 3,924,168 124,800 75,632 -49,168 3,973,336 124,800 76,580 -48,220 4,021,556 124,800 77,509 776,756 3,120,000 Prepare a bond amortization schedule from September 30, 2023, to September 30, 2028, using the effective interest rate. (Round answers to O decimal places, e.g. 5,275.) Cash Paid Schedule of Bond Premium Amortization Effective Interest Method Effective Interest Premium Amortized $ Carrying Amount 3,494,400 $ 124,800 $ 124,800 124,800 +A $ -55,257 3,663,452 70,608 -54,192 3,717,644 124,800 71,652 -53,148 3,770,792 124,800 72,676 -52,124 3,822,916 124,800 73,681 -51,119 3,874,035 124,800 74,666 -50,134 3,924,168 124,800 75,632 -49,168 3,973,336 124,800 76,580 -48,220 4,021,556 124,800 77,509 776,756 3,120,000

Answer rating: 100% (QA)

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