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Marin Ltd. sold $7.930,000 of 10% bonds, which were dated March 1, 2020, on June 1, 2020. The bonds paid interest on September 1 and
Marin Ltd. sold $7.930,000 of 10% 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 12%. Marin's fiscal year-end was February 28, and the company followed IFRS. On June 1, 2021, Marin bought back $3,930,000 worth of bonds for $3,830,000 plus accrued interest. Your answer is partially correct. 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 0 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 Cash Loss on Redemption of Bonds Bonds Payable e Textbook and Media List of Accounts Your answer is incorrect. Using 1. a financial calculator, or 2. Excel function PV, calculate the carrying amount of the bond on September 1, 2020. Use the change in the carrying amount as the amount of amortization of the discount to be recorded in the entry for the first payment. (Round answer to 0 decimal places, e.g. 5,275.) $ Carrying amount of the bond Prepare the journal entry for the scheduled interest payment on September 1, 2020. (Round answers to 0 decimal places, e.g. 5,275. Credit account titles are automatically indented when the amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit Sept. 1, 2020 Interest Expense Loss on Redemption of Bonds Cash e Textbook and Media List of Accounts Your answer is partially correct. Prepare any year-end entry required at February 28, 2021. (Round answers to 0 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 Date Feb. 28, 2021 Interest Expense Loss on Redemption of Bonds Interest Payable
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