On January 31, 2019, Jedi Ltd. issued debenture bonds that pay interest semiannually on July 31 and January 31. Portions of the bond amortization schedule appear below: 3 4 5 6 Paymer Cash Payment Amortization Prem / Disc Interest 7 8 9 1 2 3 4 5 6 10 320,000 320,000 320,000 320,000 320,000 320.000 Carrying Amount 6,627,273 6,638,637 6,650,569 6,663,098 6,676,253 6,690.066 6.704,570 331,364 331,932 332.529 333.155 333,813 334.504 11,364 11,932 12,529 13.155 13.813 14,504 11 12 13 14 15 16 17 38 39 40 320,000 320.000 320,000 389.107 392,562 396,191 69.107 72,562 76.191 7.851,247 7.923.809 8.000.000 18 19 1. What is the face amount of the bonds? 2. What is the initial selling price of the bonds, as a percentage of face amount? 3. What is the term to maturity in years? 4. What approach was used to determine the interest? 5. What is the stated (or contract) annual interest rate? 6. What is the effective (or market) annual interest rate? 7. What is the total cash interest paid over the term to maturity? 8. What is the total interest expense recorded over the term to maturity? 9. Were the bonds issued at a discount or at a premium? 0 1 2 a) Prepare the entry to record the issuance of the bonds on January 31, 2019. 13 34 32 a) Prepare the entry to record the issuance of the bonds on January 31, 2019. 33 34 35 36 37 38 39 b) Prepare any necessary adjusting journal entries (rounded to nearest dollar) at December 31, 2019. 40 41 42 43 44 45 46 C) Show how the bonds should be reported on the company's year end balance sheet rea Statement of Financial Position (partial) December 31, 2019 50 51 On January 31, 2020, Jedi purchased bonds with face value of $1,000,000 on the open market at 101 and retired them. Prepare the journal entries to record 9 d) The interest payment January 31, 2020 to all bondholders 0 1 2 53 4 55 The redemption of $1,000,000 in bonds 68 69 70 71 72 TU