On March 1, 2020, Quinto Mining Inc. issued a $600,000, 8%, 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 7% on the date of issue. (Do not round intermediate calculations. Round the final answer to nearest whole dollar.) Total issue price $ 615,986 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 Paid Period Interest Expense Premium Amort. Unamortized Premium Carrying Value Mar. 1/20 Sept. 1/20 Mar. 1/21 Sept. 1/21 Mar. 1/22 Sept. 1/22 Mar. 1/23 Totals 0 0 $ 0 $ 0 $ 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. (Do not round intermediate calculations. Round the final answers to nearest whole dollar.) View transaction list Journal entry worksheet Record the issuance of bond. Note: Enter debits before credits. Date General Journal Debit Credit Mar 01, 2020 Record entry Clear entry View general journal 1 Record the issuance of bond. N 2 Record accrual of interest on bond. 3 Record payment of interest. Part 2 a. Calculate the bond issue price assuming a market interest rate of 8.5% 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. 1/20 Mar. 1/21 Sept. 1/21 Mar. 1/22 Sept. 1/22 Mar. 1/23 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. (Do not round intermediate calculations. Round the final answers to nearest whole dollar. Enter all the amounts as positive values.) View transaction list Journal entry worksheet Record the issuance of bond. Note: Enter debits before credits. Date General Journal Debit Credit Mar 01, 2020 Record entry Clear entry View general journal 1 Record the issuance of bond. N 2 Record accrual of interest on bond. 3 Record payment of interest. d. Record the entries for the retirement of 30% of the bonds at 102, on September 1, 2020, after the interest payment. (Do not round intermediate calculations. Round the final answers to nearest whole dollar. Enter all the amounts as positive values.) View transaction list Journal entry worksheet
