Answered step by step
Verified Expert Solution
Question
1 Approved Answer
on march 1 ,2023, Quinto Mining inc. issued a 700,000$,9%,three year bond. On March 1, 2023, Quinto Mining Inc. Issued a $700,000,9%, three-year bond. Interest
on march 1 ,2023, Quinto Mining inc. issued a 700,000$,9%,three year bond.
On March 1, 2023, Quinto Mining Inc. Issued a $700,000,9%, three-year bond. Interest is payable semiannually beginning September 1,2023 Required: Part 1 a. Calculate the bond issue price assuming a market interest rate of 8% 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 calculations. Round the final answers 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, Quinto's year-end, and the payment of interest on September 1, 2023. (Do not round intermediate calculations. Round the final answers to nearest whole dollar.) c. Record the entries for the issuance of the bond on March 1, the adjusting entry to accrue bond interest and related amortization April 30, 2023, Quinto's year-end, and the payment of interest on September 1, 2023. (Do not round intermediate calculations. Round the final answers to nearest whole dollar.) Part 2 a. Calculate the bond issue price assuming a market interest rate of 10.0% 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 calculations. Round the fi answers 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 April 30, 2023, Quinto's year-end; and the payment of interest on September 1, 2023. (Do not round intermediate calculations. Round the final answers to nearest whole dollar, Enter all the amounts as positive values.) Journal entry worksheet Record the issuance of bond. Note: Enter debits before credits. d. Record the entries for the retirement of 30% of the bonds at 102, on September 1, 2023, after the interest payment. (Do not ro intermediate 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 . Note: Enter dnbits before credas Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started