On March 1, 2020, Quinto Mining Inc. issued a $690,000, 8%, three-year bond. Interest is payable...
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On March 1, 2020, Quinto Mining Inc. issued a $690,000, 8%, three-year bond. Interest is payable semiannually beginning September 1, 2020. Required: Part 1 a. Calculate the bond issue price assuming a market interest rate of 7% on the date of issue. (Do not round intermediate calculations. Round the final answer to nearest whole dollar) Total issue price b. Using the effective interest method, prepare an amortization schedule. (Do not round intermediate calculations. Round the final answers to nearest whole dollar. Enter all the amounts as positive values.) Period Ending Cash Interest Period Interest Paid Premium Amort. Unamortized Expense Premium Carrying Value Mar. 1/20 ofs Sept. 1/20 Mar. 1/21 Sept 1/21 Mar 1/22 Sept. 1/22 Mar. 1/23 Totals c. Record the entries for the issuance of the bond on March 1, the adjusting entry to accrue bond interest and related amortization on April 30, 2020, Quinto's year-end, and the payment of interest on September 1, 2020. (Do not round intermediate calculations. Round the final answers to nearest whole dollar.) View transaction list Journal entry worksheet 1 2 3 <> Record the issuance of bond. Note: Enter debits betore credits. Date General Journal Debit Credit Mar 01, 2020 Record entry Clear entry View general journal Part 2 a. Calculate the bond issue price assuming a market interest rate of 9.0% on the date of issue. (Do not round intermediate calculations. Round the final answer to nearest whole dollar.) Total issue price b. Using the effective interest method, prepare an amortization schedule. (Do not round intermediate calculations. Round the final answers to nearest whole dollar. Enter all the amounts as positive values.) Period Ending Cash Interest Period Interest Paid Unamortized Discount Discount Carrying Value Expense Amort. Mar. 1/20 Sept 1/20 Mar. 1/21 Sept. 1/21 Mar, 1/22 Sept. 1/22 Mar. 1/23 Totals c. Record the entries for the issuance of the bond on March 1; the adjusting entry to accrue bond interest and related amortization on April 30, 2020, Quinto's year-end; and the payment of interest on September 1, 2020. View transaction list Journal entry worksheet <. Record the issuance of bond. Note: Enter debits before credits Date General Journal Debit Credit Mar 01, 2020 Record entry Clear entry View general journal d. Record the entries for the retirement of 30% of the bonds at 102, on September 1, 2020, after the interest payment. On March 1, 2020, Quinto Mining Inc. issued a $690,000, 8%, three-year bond. Interest is payable semiannually beginning September 1, 2020. Required: Part 1 a. Calculate the bond issue price assuming a market interest rate of 7% on the date of issue. (Do not round intermediate calculations. Round the final answer to nearest whole dollar) Total issue price b. Using the effective interest method, prepare an amortization schedule. (Do not round intermediate calculations. Round the final answers to nearest whole dollar. Enter all the amounts as positive values.) Period Ending Cash Interest Period Interest Paid Premium Amort. Unamortized Expense Premium Carrying Value Mar. 1/20 ofs Sept. 1/20 Mar. 1/21 Sept 1/21 Mar 1/22 Sept. 1/22 Mar. 1/23 Totals c. Record the entries for the issuance of the bond on March 1, the adjusting entry to accrue bond interest and related amortization on April 30, 2020, Quinto's year-end, and the payment of interest on September 1, 2020. (Do not round intermediate calculations. Round the final answers to nearest whole dollar.) View transaction list Journal entry worksheet 1 2 3 <> Record the issuance of bond. Note: Enter debits betore credits. Date General Journal Debit Credit Mar 01, 2020 Record entry Clear entry View general journal Part 2 a. Calculate the bond issue price assuming a market interest rate of 9.0% on the date of issue. (Do not round intermediate calculations. Round the final answer to nearest whole dollar.) Total issue price b. Using the effective interest method, prepare an amortization schedule. (Do not round intermediate calculations. Round the final answers to nearest whole dollar. Enter all the amounts as positive values.) Period Ending Cash Interest Period Interest Paid Unamortized Discount Discount Carrying Value Expense Amort. Mar. 1/20 Sept 1/20 Mar. 1/21 Sept. 1/21 Mar, 1/22 Sept. 1/22 Mar. 1/23 Totals c. Record the entries for the issuance of the bond on March 1; the adjusting entry to accrue bond interest and related amortization on April 30, 2020, Quinto's year-end; and the payment of interest on September 1, 2020. View transaction list Journal entry worksheet <. Record the issuance of bond. Note: Enter debits before credits Date General Journal Debit Credit Mar 01, 2020 Record entry Clear entry View general journal d. Record the entries for the retirement of 30% of the bonds at 102, on September 1, 2020, after the interest payment.
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Answer rating: 100% (QA)
Part 1 a Bond issue pricePresent value of bond interest paymentPresent value repayment of bond at maturity Present value of bond interest paymentInter... View the full answer
Related Book For
Fundamental Accounting Principles Volume II
ISBN: 978-1260305838
16th Canadian edition
Authors: Kermit Larson, Tilly Jensen, Heidi Dieckmann
Posted Date:
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