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Carla Ltd. sold $6,740,000 of 12% bonds, which were dated March 1, 2020, on June 1, 2020. The bonds paid interest on September 1
Carla Ltd. sold $6,740,000 of 12% bonds, which were dated March 1, 2020, on June 1, 2020. The bonds paid interest on September 1 and March 1 of each year. The bonds' maturity date was March 1, 2030, and the bonds were issued to yield 14%. Carla's fiscal year-end was February 28, and the company followed IFRS. On June 1, 2021, Carla bought back $2,740,000 worth of bonds for $2,640,000 plus accrued interest. 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.) Account Titles and Explanation Debit Credit Prepare the journal entry for the scheduled interest payment on September 1, 2020. (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.) Date Sept. 1, Account Titles and Explanation 2020 Debit Credit
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