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JSM Ltd. sold $6,010,000 of 8% bonds, which were dated March 1, 2023, on June 1, 2023. The bonds paid interest on September 1 and March 1 of each year. The bonds' maturity date was March 1, 2033, and the bonds were issued to yield 10%. JSM's fiscal year-end was February 28, and the company followed IFRS. On June 1, 2024, JSM bought back $2,010,000 worth of bonds for $1,910,000 plus accrued interest. (a) Your Answer Correct Answer (Used) 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 O decimal places, e.g. 5,275. Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. List all debit entries before credit entries.) (b) Account Titles and Explanation Cash Interest Expense Bonds Payable Debit 5,392,409 Credit 120,200 5,272,209 Using 1. a financial calculator, or 2. Excel function PV, calculate the carrying amount of the bond on September 1, 2023. 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 $

JSM Ltd. sold $6,010,000 of 8% bonds, which were dated March 1, 2023, on June 1, 2023. The bonds paid interest on September 1 and March 1 of each year. The bonds' maturity date was March 1, 2033, and the bonds were issued to yield 10%. JSM's fiscal year-end was February 28, and the company followed IFRS. On June 1, 2024, JSM bought back $2,010,000 worth of bonds for $1,910,000 plus accrued interest. (a) Your Answer Correct Answer (Used) 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 O decimal places, e.g. 5,275. Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. List all debit entries before credit entries.) (b) Account Titles and Explanation Cash Interest Expense Bonds Payable Debit 5,392,409 Credit 120,200 5,272,209 Using 1. a financial calculator, or 2. Excel function PV, calculate the carrying amount of the bond on September 1, 2023. 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 $

Excel Applications for Accounting Principles
Excel Applications for Accounting Principles
4th Edition
ISBN:9781111581565
Author:Gaylord N. Smith
Publisher:Gaylord N. Smith
ChapterMB: Model-building Problems
Section: Chapter Questions
Problem 13M
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JSM Ltd. sold $6,010,000 of 8% bonds, which were dated March 1, 2023, on June 1, 2023. The bonds paid interest on September 1 and March 1 of each year. The bonds' maturity date was March 1, 2033, and the bonds were issued to yield 10%. JSM's fiscal year-end was February 28, and the company followed IFRS. On June 1, 2024, JSM bought back $2,010,000 worth of bonds for $1,910,000 plus accrued interest. (a) Your Answer Correct Answer (Used) 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 O decimal places, e.g. 5,275. Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. List all debit entries before credit entries.) (b) Account Titles and Explanation Cash Interest Expense Bonds Payable Debit 5,392,409 Credit 120,200 5,272,209 Using 1. a financial calculator, or 2. Excel function PV, calculate the carrying amount of the bond on September 1, 2023. 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 $
Transcribed Image Text:JSM Ltd. sold $6,010,000 of 8% bonds, which were dated March 1, 2023, on June 1, 2023. The bonds paid interest on September 1 and March 1 of each year. The bonds' maturity date was March 1, 2033, and the bonds were issued to yield 10%. JSM's fiscal year-end was February 28, and the company followed IFRS. On June 1, 2024, JSM bought back $2,010,000 worth of bonds for $1,910,000 plus accrued interest. (a) Your Answer Correct Answer (Used) 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 O decimal places, e.g. 5,275. Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. List all debit entries before credit entries.) (b) Account Titles and Explanation Cash Interest Expense Bonds Payable Debit 5,392,409 Credit 120,200 5,272,209 Using 1. a financial calculator, or 2. Excel function PV, calculate the carrying amount of the bond on September 1, 2023. 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 $
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