intermediate accounting volume 2

At 31 December 20X8, Northern Resources Ltd. reports the following on its statement of financial position: Bonds payable, 6%, interest payable semi-annually on 38 June and 38 December $9,986,808 Discount on bonds payable 495,888 $9,485,888 The effective interest rate, or market interest rate, was 8% on issuance. On 1 March 20x9, 30% ofthe 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) $495,888 $9,485,888 1 $297,999 $376, 299 $79, 299 415,399 9,484, 299 2 297,999 379,368 82,368 333,432 9,566,568 Required: Provide the entries to record: 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 "Nojournal entry required" in the first account field. Round your answers to the nearest whole dollar amount.) View transaction list Journal entry worksheet Record the interest paid to the date of retirement. Note: Enter debits before credits. 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.) View transaction list Journal entry worksheet Record the interest for the portion of bond still outstanding. Note: Enter debits before credits. 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.) View transaction list Journal entry worksheet Record the entry to retire bonds. Note: Enter debits before credits