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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 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 O decimal places, e.g. 5,275.) $ Carrying amount of the bond Prepare the journal entry for the scheduled interest payment on September 1, 2020. (Round answers 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 Date Sept. 1, 2020 Prepare any year-end entry required at February 28, 2021. (Round answers to decimal places, eg. 5,275. Credit account tities are automatically indented when the amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit Feb. 28, 2021 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) Debit Credit Date Account Titles and Explanation 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 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

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