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need help on the blank areas, please On March 1, 2020, Quinto Mining Inc. issued a $510,000, 11%, three-year bond. Interest is payable semiannually beginning
need help on the blank areas, please
On March 1, 2020, Quinto Mining Inc. issued a $510,000, 11%, three-year bond. Interest is payable semiannually beginning September 1, 2020 Required: Part 1 a. Calculate the bond issue price assuming a market interest rate of 10% on the date of issue. (Do not round intermediate calculations. Round the final answer to nearest whole dollar.) Total issue price $ 522,943 b. Using the effective interest method, prepare an amortization schedule. (Do not round intermediate calculations. Round the final answers to nearest whole dollar. Enter all the amounts as positive values.) Period Ending Mar. 1/20 Sept. 1/20 Mar. 1/21 Sept. 1/21 Mar. 1/22 Sept. 1/22 Mar. 1/23 Cash Interest Period Interest Premium Unamortized Paid Expense Amort. Premium Carrying Value $ o s os o s os 522,943 28,050 26,147 1,903 28,050 521,040 28,050 25,052 1,998 27,050 519,042 28,050 25,952 2,098 28,050 516,944 28,050 25,847 2,203 28,050 514,741 28,050 25,737 2,313 28,050 512,439 28,050 25,621 2,439 25,611 510,000 S 168,300 S 154,356 S 12,954 Totals c. Record the entries for the issuance of the bond on March 1, the adjusting entry to accrue bond interest and related amortization on April 30, 2020, Quinto's year-end, and the payment of interest on September 1, 2020. (Do not round intermediate calculations. Round the final answers to nearest whole dollar.) View transaction list View journal entry worksheet No Credit Debit 22,943 1 Date General Journal Mar 01, 2020 Cash Bonds payable Premium on bonds payable 12,943 510,000 2 Apr 30, 2020 Bond interest expense Premium on bonds payable Interest payable 3 Sep 01, 2020 Interest payable Bond interest expense Premium on bonds payable Cash 9,350 17,431 1,269 28,050 a. Calculate the bond issue price assuming a market interest rate of 12.0% on the date of issue. (Do not round intermediate calculations. Round the final answer to nearest whole dollar.) Total issue price $ 497,460 b. Using the effective interest method, prepare an amortization schedule. (Do not round intermediate calculations. Round the final answers to nearest whole dollar. Enter all the amounts as positive values.) Unamortized Discount Carrying Value S o s 497,460 0 Period Ending Mar. 1/20 Sept. 1/20 Mar. 1/21 Sept. 1/21 Mar. 1/22 Sept. 1/22 Mar. 1/23 Cash Interest Period Interest Discount Paid Expense Amort. S o s of s 28,050 28,050 28,050 28,050 28,050 28,050 S 168,300 $ 0 S 0 0 Totals 0 c. Record the entries for the issuance of the bond on March 1; the adjusting entry to accrue bond interest and related amortization on April 30, 2020, Quinto's year-end; and the payment of interest on September 1, 2020. View transaction list View journal entry worksheet No Debit Credit 1 Date General Journal Mar 01, 2020 Cash Bonds payable Discount on bonds payable 2 Apr 30, 2020 Bond interest expense Discount on bonds payable Interest payable 3 Sep 01, 2020 Bonds payable Bond interest expense Discount on bonds payable Cash d. Record the entries for the retirement of 30% of the bonds at 102, on September 1, 2020, after the Interest payment. View transaction list Journal entry worksheet Record retirement of 30% of shares at 102. Note: Enter debits before credits. Date General Journal Debit Credit Sep 01, 2020 Record entry Clear entry View general journal Step by Step Solution
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