Answered step by step
Verified Expert Solution
Question
1 Approved Answer
show working calculations too On September 1, 2017. Contact Incorporated issued a 400,000, 15%, four-year bond. Interest is paid semi-annually beginning March 1. 2018 (a)
show working calculations too
On September 1, 2017. Contact Incorporated issued a 400,000, 15%, four-year bond. Interest is paid semi-annually beginning March 1. 2018 (a) (b) (c) (o (e) Cash Interest Period interest Amort Carrying Value Unamortized (e) 13.5% * 6/12 (a) -(0) $400,000 Period Ending 15% 6/12 Sept 1/17 Mar. 1/18 30,000 Sept. 1/18 30,000 Mar. 1/19 30,000 Sept. 1/19 30,000 Mar. 1/20 30,000 Sept. 1/20 30,000 ML 1/21 30,000 Sept. 1/21 30,000 Totals 240,000 28,221 28,101 27,973 27,836 27,690 27,534 27,367 27,189 221.911 1,779 1,899 2.027 2,164 2,310 2.466 2,633 2,811 18,089 18,089 16,310 14,411 12,384 10,220 7.910 5.444 2,811 0 $400,000 + (0 418,089 416,310 414,411 412,384 410,220 407 910 405,444 402,811 400,000 Required: Record the journal entries on the following dates: September 1, 2017 (1 mark) September 1, 2018 (1 mark) The Bond was retired on Sept 1, 2019. for cash of $407,110 (2 marks)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