Metlock Ltd. issued a $791,000, 10-year bond dated January 1, 2023. The bond was sold to yield 12% effective interest The bond paid 10% interest on January 1 and July 1 each year. The company's year-end was December 31, and Metlock followed IFRS. Using 1. factor Tables 2. a financial calculator, or 3. Excel function PV, calculate the amount received for the bond, and any discount or premium on the bond. Click here to view the factor table PRESENT VALUE OF 1. Click here to view the factor table PRESENT VALUE OF AN ORDINARY ANNUITY OF 1. (Round present value factor calculations to 5 decimal places, e.g. 1.25124 and final answers to 0 decimal places e.g. 58,971.) Proceeds from sale of bond Discount on bond Prepare the journal entries for above transactions. (Round answers to 0 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 0 for the amounts. List all debit entries before credit entries.) Cash Account Titles and Explanation Bonds Payable Interest Expense Bonds Payable Cash Interest Expense Bonds Payable Interest Payable $ Interest Payable $ Cash Debit 39,550 Credit 39,550 39,550 39,550
Metlock Ltd. issued a $791,000, 10-year bond dated January 1, 2023. The bond was sold to yield 12% effective interest The bond paid 10% interest on January 1 and July 1 each year. The company's year-end was December 31, and Metlock followed IFRS. Using 1. factor Tables 2. a financial calculator, or 3. Excel function PV, calculate the amount received for the bond, and any discount or premium on the bond. Click here to view the factor table PRESENT VALUE OF 1. Click here to view the factor table PRESENT VALUE OF AN ORDINARY ANNUITY OF 1. (Round present value factor calculations to 5 decimal places, e.g. 1.25124 and final answers to 0 decimal places e.g. 58,971.) Proceeds from sale of bond Discount on bond Prepare the journal entries for above transactions. (Round answers to 0 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 0 for the amounts. List all debit entries before credit entries.) Cash Account Titles and Explanation Bonds Payable Interest Expense Bonds Payable Cash Interest Expense Bonds Payable Interest Payable $ Interest Payable $ Cash Debit 39,550 Credit 39,550 39,550 39,550
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Metlock Ltd. issued a $791,000, 10-year bond dated January 1, 2023. The bond was sold to yield 12% effective interest.
The bond paid 10% interest on January 1 and July 1 each year. The company's year-end was December 31, and Metlock
followed IFRS. Using 1. factor Tables 2. a financial calculator, or 3. Excel function PV, calculate the amount received for
the bond, and any discount or premium on the bond.
Click here to view the factor table PRESENT VALUE OF 1.
Click here to view the factor table PRESENT VALUE OF AN ORDINARY ANNUITY OF 1. (Round present value
factor calculations to 5 decimal places, e.g. 1.25124 and final answers to 0 decimal places e.g.
58,971.)
Proceeds from sale of bond
Discount on bond
Prepare the journal entries for above transactions. (Round answers to 0 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 0 for the amounts. List all debit
entries before credit entries.)
Cash
Account Titles and Explanation
Bonds Payable
Interest Expense
Bonds Payable
Cash
Interest Expense
Bonds Payable
Interest Payable
$
Interest Payable
$
Cash
Debit
39,550
Credit
39,550
39,550
39,550
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