Question
WhisperingLtd. sold $6,830,000of8% bonds, which were dated March 1, 2020, on June 1, 2020. The bonds paid interest on September 1 and March 1 of
WhisperingLtd. sold $6,830,000of8% 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 yield10%.Whispering's fiscal year-end was February 28, and the company followed IFRS. On June 1, 2021,Whisperingbought back $2,830,000worth of bonds for $2,730,000plus accrued interest.
a,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 Payable in your entry).
b,Prepare the journal entry for the scheduled interest payment on September 1, 2020
c, Prepare any year-end entry required at February 28, 2021
d,Prepare the entry required for the redemption of face value $2,830,000of the bonds on June 1, 2021.
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