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Stilton Hotels Ltd, issued 10-vear bonds on November 1, 2020, to finance the purchase of several new hotels. The bonds pay interest semi-annually on April
Stilton Hotels Ltd, issued 10-vear bonds on November 1, 2020, to finance the purchase of several new hotels. The bonds pay interest semi-annually on April 30 and October 31 every year. Stilton Hotels decided to retire some of the bonds on June 1, 2022. Sulton Hotels follows IFRS Other information pertaining to the issuance of the bends follows: Face value of bonds S 1.111 000 Coupon rate 99 Effective interest rate Percentage of bond issue that was retired Price at which retired bonds were repurchased Assume that Stilton Hotels has a December 31 year end, and that the cempany Days any interest accrued at the time debt is retired. Required: a) Prepare an anvortization schedule for the first 2 years of the bond issue. b) Prepare the journal entry to the issuance of the bond on November 1, 2020 Prepare all journal entries after the Issuance of the bend und Decenser 31, 2021 Calculate the gain or loss on the partial retirement of the bends on June 1, 2022 e Prepare the journal entries to record the partial retirement of the bonds on Fun 1 2022 Stilton Hotels Ltd, issued 10-vear bonds on November 1, 2020, to finance the purchase of several new hotels. The bonds pay interest semi-annually on April 30 and October 31 every year. Stilton Hotels decided to retire some of the bonds on June 1, 2022. Sulton Hotels follows IFRS Other information pertaining to the issuance of the bends follows: Face value of bonds S 1.111 000 Coupon rate 99 Effective interest rate Percentage of bond issue that was retired Price at which retired bonds were repurchased Assume that Stilton Hotels has a December 31 year end, and that the cempany Days any interest accrued at the time debt is retired. Required: a) Prepare an anvortization schedule for the first 2 years of the bond issue. b) Prepare the journal entry to the issuance of the bond on November 1, 2020 Prepare all journal entries after the Issuance of the bend und Decenser 31, 2021 Calculate the gain or loss on the partial retirement of the bends on June 1, 2022 e Prepare the journal entries to record the partial retirement of the bonds on Fun 1 2022
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