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Splish Ltd, sold $7,060,000 of 12% bonds, which were dated March 1, 2020, on June 1, 2020. The bonds paid interest on September 1 and

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Splish Ltd, sold $7,060,000 of 12% bonds, which were dated March 1, 2020, on June 1, 2020. The bonds paid interest on September 1 and March 1 of each year. The bonds' maturity date was March 1, 2030, and the bonds were issued to yield 14%. Splish's fiscal year-end was February 28, and the company followed IFRS. On June 1, 2021, Splish bought back $3,060,000 worth of bonds for $2,960,000 plus accrued interest Using 1. a financial calculator, or 2. Excel function PV. calculate the issue price of the bonds and prepare the entry for the issuance of the bonds. (Hint: Use the account Interest Expense in your entry). (Round answer to decimal places, eg,5,275. Credit account titles are automatically indented when the amount is entered. Do not indent manually) Account Titles and Explanation Debit Credit Cash 6312062.59 Loss on Retirement of Bonds 74793741 Bonds Payable 7060000 Using 1. a financial calculator, or 2. Excel function PV calculate the carrying amount of the bond on September 1, 2020. Use the change in the carrying amount as the amount of amortization of the discount to be recorded in the entry for the first payment (Round answer to decimal places, c.8. 5,275.) $ 6330306.97 Carrying amount of the bond Prepare the journal entry for the scheduled interest payment on September 1, 2020. (Round answers to O decimal places, eg. 5,275. Credit account titles are automatically indented when the amount is entered. Do not indent manually.) Debit Credit Date Account Titles and Explanation 441844 38 Sept. 1 2020 Interest Expense 18244.38 Loss on Redemption of Bonds 423600 Cash Prepare any year-end entry required at February 28, 2021. (Round answers to decimal places, e.g. 5.275. Credit account titles are automatically indented when the amount is entered. Do not indent manually) Debit Credit Date Account Titles and Explanation Feb. 28 Interest Expense 2021 44312149 Loss on Retirement of Bonds 19521.49 Cash 423600 Accrue the interest on the portion of the bonds redeemed. (Round answers to decimal places, eg,5,275. Credit account titles are automatically indented when the amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit June 1, 2021 Prepare the entry required for the redemption of face value $3,060,000 of the bonds on June 1, 2021. (Round answers to o decimal places, eg. 5,275. Credit account titles are automatically indented when the amount is entered. Do not indent manually.) Debit Credit Date Account Titles and Explanation June 1, Bonds Payable 2021 3060000 Loss on Redemption of Bonds 20328134 Loss on Retirement of Bonds 30328130 Cash 2960000

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