CAL Ltd$.$ sold $$6,700,000$ 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 $12\%.$ CAL's fiscal year$-$end was February $28,$ and the company followed IFRS.

On June $1,2024,$ CAL bought back $$2,700,000$ worth of bonds for $$2,600,000$ 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 $0$ 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 $0$ for the amounts. List all debit entries before credit entries.$)$

Account Titles and Explanation

Debit

Credit

enter an account title

Cash

Correct answer

enter a debit amount

$5931515$

Incorrect answer

enter a credit amount

Incorrect answer

enter an account title

Bonds Payable

Correct answer

enter a debit amount

Incorrect answer

enter a credit amount

Incorrect answer

enter an account title

Interest Expense

Correct answer

enter a debit amount

Incorrect answer

enter a credit amount

Incorrect answer

eTextbook and Media

List of Accounts

Your answer is incorrect.

Using $1.$ a financial calculator, or $2.$ Excel function PV$,$ calculate the carrying amount of the bond on September $1,2023.$ Use the change in the carrying amount as the amount of amortization of the discount to be recorded in the entry for the first payment. $($Round answer to $0$ decimal places, e$.$g$.5,275.)$

Carrying amount of the bond

$enter the carrying amount of the bond in dollars

Incorrect answer

eTextbook and Media

List of Accounts

Your answer is partially correct.

Prepare the journal entry for the scheduled interest payment on September $1,2023.($Round answer to $0$ 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 $0$ for the amounts. List all debit entries before credit entries.$)$

Date

Account Titles and Explanation

Debit

Credit

Sept. $1,2023$

enter an account title for the journal entry on September $1,2023$

Interest Expense

Correct answer

enter a debit amount

Incorrect answer

enter a credit amount

Incorrect answer

enter an account title for the journal entry on September $1,2023$

Bonds Payable

Correct answer

enter a debit amount

Incorrect answer

enter a credit amount

Incorrect answer

enter an account title for the journal entry on September $1,2023$

Cash

Correct answer

enter a debit amount

Incorrect answer

enter a credit amount

Incorrect answer

eTextbook and Media

List of Accounts

Your answer is partially correct.

Prepare any year$-$end entry required at February $28,2024.($Round answer to $0$ 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 $0$ for the amounts. List all debit entries before credit entries.$)$

Account Titles and Explanation

Debit

Credit

enter an account title

Interest Expense

Correct answer

enter a debit amount

Incorrect answer

enter a credit amount

Incorrect answer

enter an account title

Bonds Payable

Correct answer

enter a debit amount

Incorrect answer

enter a credit amount

Incorrect answer

enter an account title

Cash

Incorrect answer

enter a debit amount

Incorrect answer

enter a credit amount

Incorrect answer

eTextbook and Media

List of Accounts

Your answer is partially correct.

Prepare the journal entry for the accrued interest on the portion of the bonds redeemed. $($Round answer to $0$ 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 $0$ for the amounts. List all debit entries before credit entries.$)$

Account Titles and Explanation

Debit

Credit

enter an account title

Interest Expense

Correct answer

enter a debit amount

Incorrect answer

enter a credit amount

Incorrect answer

enter an account title

Interest Payable

Correct answer

enter a debit amount

Incorrect answer

enter a credit amount

Incorrect answer

enter an account title

Bonds Payable

Correct answer

enter a debit amount

Incorrect answer

enter a credit amount

Incorrect answer

eTextbook and Media

List of Accounts

Your answer is partially correct.

Prepare the entry required for the redemption of face value $$2,700,000$ of the bonds on June $1,2024.($Round answer to $0$ decimal places, e$.$g$.5,275.$ Credit account titles are automatically i