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Lasso Green Ltd. is incorporated in Alberta and specializes in carbon sequestration (to reduce greenhouse gases in the atmosphere). To acquire a piece of land
Lasso Green Ltd. is incorporated in Alberta and specializes in carbon sequestration (to reduce greenhouse gases in the atmosphere). To acquire a piece of land in central Alberta where carbon would be sequestered, the company issued $300,000, 5% bonds on January 1, 2014, to yield 4% per year. The bonds would be outstanding for 8 years from the issuance date and pay interest semi-annually on July 1 and January 1. 1. How much was raised by Lasso Green from the bond issue? (You must present value factors from the attached tables for calculations to receive credit.) 2. Prepare an amortization table using the effective-interest method of amortization. Complete the first five payments only, 3. Prepare journal entries for 2014 and 2015, using the effective-interest method. Lasso Green has a December 31 fiscal year-end. 4. Prepare journal entries for 2014, using the effective-interest method. Assume Lasso Green has an October 31 fiscal year-end. 5. Assume that 20% of the bonds were bought back on the open market on August 1, 2015 at 101. Record the journal entry for the hond buy-back. Assume the fiscal-year end is December 31
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