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Mos Motor Corp. issued $250,000 of 6%, 5-year bonds on April 1, 2021. Interest is payable semi-annually on April 1 and October 1. On April

Mos Motor Corp. issued $250,000 of 6%, 5-year bonds on April 1, 2021. Interest is payable semi-annually on April 1 and October 1. On April 1, 2023, immediately after making and recording the semi-annual interest payment, Mos redeemed the bonds. Below is a partial amortization schedule for the first few years of the bond issue.

Mo's Motor Corp. Bond Discount Amortization Schedule
Interest Period Interest Payment Interest Expense Amortization Bond Amortized Cost
01-Apr. 2021 $239,604.24
01-Oct. 2021 $7,500.00 $8,386.15 $886.15 240,490.39
01-Apr. 2022 7,500.00 8,417.16 917.16 241,407.55
01-Oct. 2022 7,500.00 8,449.26 949.26 242,356.81
01-Apr. 2023 7,500.00 8,482.49 982.49 243,339.30

Were the bonds issued at a discount or at a premium?

The bonds were issued at a premiumdiscount.

What is the bonds face value?

Face value $

What will be the bonds amortized cost at the maturity date?

Amortized cost $

Prepare the journal entry to record the payment of interest on Oct 1, 2021? (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Round answers to 2 decimal places, e.g. 5,275.25.)

Date

Account Titles and Explanation

Debit

Credit

Oct. 1, 2021

Prepare the journal entry to record the redemption of the bonds assuming they were redeemed at 100. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Round answers to 2 decimal places, e.g. 5,275.25.)

Date

Account Titles and Explanation

Debit

Credit

Apr. 1, 2023

Prepare the journal entry to record the redemption of the bonds assuming they were redeemed at 96. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Round answers to 2 decimal places, e.g. 5,275.25.)

Date

Account Titles and Explanation

Debit

Credit

Apr. 1, 2023

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