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On January 1, 2022, North West Suppliers Ltd. issues $500,000, 6%, five-year bonds, with interest payable on July 1 and January 1. North West Suppliers'
On January 1, 2022, North West Suppliers Ltd. issues $500,000, 6%, five-year bonds, with interest payable on July 1 and January 1. North West Suppliers' fiscal year ends on December 31. Q1 Please verify that the bonds would sell for $521,880 on January 1, 2022 if the market rate of interest is 5%. Small rounding errors are acceptable. A. Present value of Face amount of $500.000 : $ B. Present value of interest payments: $ C. Total: $ Q2 Please complete (D) through (H) below, beginning with the issue date and for the periods ending on July 1, 2022. Use $521,880 as the carrying amount on January 1, 2022. D. Interest to be paid: $ E. Interest Expense to be recorded: $ F. Premium Amortization: $ G. Unamortized Premium: $ H. Bond Carrying Amount: $ Q3 Please record the journal entries associated with the bonds on January 1, 2022, July 1, 2022 and December 31, 2022. Please use a separate account for the "bond premium". January 1,2022 I. Debit Account Name: J. Debit Account Amount: $ K. Credit Account Name: L. Credit Account Amount: $ M. Credit Account Name: N. Credit Account Amount: $ July 1,2022 O. Debit Account Name: P. Debit Account Amount: $ Q. Debit Account Name: Q. Debit Account Name: R. Debit Account Amount: $ S. Credit Account Name: T. Credit Account Amount: $ December 31,2022 U. Debit Account Name: V. Debit Account Amount: $ W. Debit Account Name: X. Debit Account Amount: $ Y. Credit Account Name: Z. Credit Account Amount: $
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