Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

On March 1, 2020. Quinto Mining Inc. issued a $570,000, 12%, three-year bond. Interest is payable semiannually beginning September 1.2020 Required: Part 1 a. Calculate

image text in transcribedimage text in transcribedimage text in transcribedimage text in transcribedimage text in transcribedimage text in transcribedimage text in transcribed

On March 1, 2020. Quinto Mining Inc. issued a $570,000, 12%, 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 11% on the date of issue (Do not round intermediate calculations Round the final answer to nearest whole dollar) Total Issue price 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 Cash Interest Period Interest Premium Paid Expense Amort. Unamortized Premium Carrying Value 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.) Cash Interest Period Interest Premium Paid Expense Amort Unamortized Premium Carrying Value Period Ending Mar. 120 Sept. 1/20 Mar. 121 Sept. 1/21 Mar 122 Sept 1/22 Mar 123 Totals 0 $ 0$ OS c. Record the entries for the issuance of the bond on March 1, the adjusting entry to accrue bond interest and related amortization on C. record the entries for the issuance or une bono on Marcn , the justing entry to accrue sono interest and restes amortization or 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 X > 1 Record the issuance of bond. 2 Record accrual of interest on bond. Record payment of interest. Credit a. Calculate the bond issue price assuming a market interest rate of 13.0% on the date of issue. Do not round intermediate calculations. Round the final answer to nearest whole dollar) Total issue price 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.) Cash Interest Period interest Paid Expense Discount Amort. Unamortized Discount Carrying Value Period Ending Mar. 1/20 Sept. 120 Mar. 121 Sept. 121 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.) Cash Interest Period Interest Discount Paid Expense Amort. Unamored Carrying Valu Discount Period Ending Mar. 1/20 Sept 120 Mar. 121 Sept. 121 Mar. 1122 Sept. 122 Mar 1123 Totals 0 $ 0$ 0$ c. Record the entries for the issuance of the bond on March 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 Journal entry worksheet 1 2 3 > Record the issuance of bond. Note: triter debits before credits Date Mar 01, 2020 General Journal Debit Credit d. Record the entries for the retirement of 30% of the bonds at 102. on September 1, 2020, after the interest payment View transaction ist Journal entry worksheet

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Payroll Accounting 2019

Authors: Bernard J. Bieg, Judith A. Toland

29th Edition

1337619779

More Books

Students also viewed these Accounting questions