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Help me in figuring out the correct answers. I have marked the wrong ones. A13-23 Debt Retirement (LO 13-7) At 31 December 20X8, Northern Resources
Help me in figuring out the correct answers. I have marked the wrong ones.
A13-23 Debt Retirement (LO 13-7) At 31 December 20X8, Northern Resources Ltd, reports the following on its statement of financial position: Bonds payable, 5%, interest payable semi-annually on 30 June and 30 December Discount on bonds payable $9,500,000 475,000 $9,025,000 The effective interest rate, or market interest rate, was 6% on issuance. On 1 March 20X9, 30% of the bond issue was bought back in the open market and retired at 101 plus accrued interest. The following table relates to 20x9 (numbers have been rounded): Amortization Schedule, Effective-Interest Method: Balance Interest Interest Premium Unamortized Carrying Amount Period Cash Interest Expense Amortization Premium of Bonds reporting date (above) $475,000 $9,025,000 1 $237,500 $270,750 $33,250 441,750 9,058, 250 2. 237,500 271,748 34,248 407,502 9,092,498 Required: Provide the entries to record: 1. Interest paid to the date of retirement on the 30% of bond retired. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Round your answers to the nearest whole dollar amount.) x Answer is complete but not entirely correct. No Transaction Credit 1 1 General Journal Interest expense Cash Discount on bonds payable Debit 27,277 23,750 3,527X 2. Bond retirement (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Round your answers to the nearest whole dollar amount.) X Answer is complete but not entirely correct. No Transaction Credit 1 1 General Joumal Bonds payable Loss on bond retirement Cash Discount on bonds payable Debit 2,850,000 147,224X 2,878,500 118,724X 3. Interest on 30 June 20x9 for the portion of the bond still outstanding. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Round your answers to the nearest whole dollar amount.) X Answer is complete but not entirely correct. No Transaction Credit 1 General Journal Interest expense Cash Discount on bonds payable Debit 190,942X 166,250 24,692XStep by Step Solution
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