Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

On March 1, 2023, Quinto Mining Inc. issued a $520.000,10%, three-year bond. Interest is payable semlannually beginning September 1,2023. Required: Port 1 a. Calculate the

image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
On March 1, 2023, Quinto Mining Inc. issued a $520.000,10%, three-year bond. Interest is payable semlannually beginning September 1,2023. Required: Port 1 a. Calculate the bond issue price assuming a market interest rate of 9% on the date of issue. (Do not round Intermediate calculations. Round the final answer to nearest whole dollar). b. Using the effective interest method, prepare an amortization schedule. (Do not round intermediate calcuiations. Round the final answers to nearest whole dollar, Enter all the amounts as positive values.) c. Record the entries for the issuance or the bond on March 1, the adjusting entry to acciue bond interest and resated amortization on Apni 30, 2023, Guinto's year-end, and we poyment of interest on September 1,2023. (Do not round intermediate calculations. Round the finol onswers to nearest whole dollari) c. Record the entres for the issuance of the bond on March 1, the adjusting entry to accrue bond interest and related amortization on April 30, 2023, Quinto's year-end, and the payment of interest on September 1, 2023. (Do not round Intermedlate calculations. Pound the final ancwers to nearest whole dollar.) Journal entry worksheet Fecord the issuance of bond. Port 2 a. Caiculate the bond sssue price assuming a market interest rate of 11 . 0 on the cate of issue (Do not round intermediate celcuibtions. Round the final answer to neorest whole dollor,) a. Calculate the bond issue price assuming a market interest rate of 11.0% on the date of issue. (Do not round intermediate calculations. Round the final answer to nearest whole dollor.) b. Using the effective interest method, prepare an amortization schedule. (Do not round intermediate colculations, Round the final onswers to nearest whole dollar. Enter all the amounts as positive values.) 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, 2023, Guinto's year-end; and the payment of interest on September 1, 2023. (Do not round Intermediate calcisiotions. Round the final answers to nearest whole dollar. Enter all the omounts os positive values.) Journal entry worksheet c. Record the entres for the issuance of the bond on March 1 , the adjusting entry to accrue bond interest and reloted amortization on Apni 30, 2023, Qunto's year-end, and the payment of interest on September 1, 2023. (Oo not round intermediate calculations. Pound the finol onswers to nearest whole dollar. Enter all the omounts as positive volues.) Journal entry worksheet 3 d. Recorc the entres for the retirement of 30% of the bonds at 102 , on September 1,2023 , ater the interest payment (Do not round intermediate colcuietions, Round the finol onswers to nearest whole doliar. Enter all the omounts os pocitive values). Journal entry worksheet d. Record the entres for the retirement of 30% of the bonds at 102, on September 1, 2023, after the interest payment. (Do not round Intermedlate calculations. Round the final answers to nearest whole dollar. Enter all the amounts as positive values.) Journal entry worksheet Record retirement of 30% of shares at 102 . Moter Enter debita beline credies

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

Students also viewed these Accounting questions