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ONLY question D. E On March 1, 2021, your company sold $80,000 of 9%, 8-year bonds when the market rate was 7%. These bonds pay
ONLY question D. E
On March 1, 2021, your company sold $80,000 of 9%, 8-year bonds when the market rate was 7%. These bonds pay interest semi-annually on August 31 and February 28 each year. Your company uses the interest method of amortization. On October 1, 2022, your company bought back $20,000 of the bonds at 103 plus accrued interest. A. Calculate the selling price of the bonds. Show the time value of money factors you entered into your calculator. B. Prepare an amortization table for the 8 year life of the bond. The table should have separate columns for each semiannual period (1 - 16), the beginning balance each period, the amount of the payment each period, the amount of interest each period, the amount of amortization each period, and the ending balance each period. It would probably be a good idea to use a spreadsheet for this table. Please round all amounts in this table to the nearest PENNY. C. Prepare journal entries from March 1, 2021, through December 31, 2022 (including adjusting and reversing entries and the retirement of part of the bonds on October 1, 2022), assuming your company's year ends on December 31. Put the appropriate date beside each journal entry. D. Prepare a list of the current liabilities AND THE AMOUNTS from the above transactions which should be reported on the balance sheet on December 31, 2021, and on December 31, 2022. E. Prepare a list of the NON current liabilities AND THE AMOUNTS from the above transactions which should be reported on the balance sheet on December 31, 2021, and on December 31, 2022Step by Step Solution
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