Make any necessary journal entries and adjusting journal entries related to bonds payable for 2022.See information below:On March 1 of the current year (2022), Red Robin issued 725, 7.9% bonds with a face value of$1,000 each.The bonds are 10-year bonds and pay interest on August 31 and February 28th of each year.Each bond is convertible into 5 shares of common stock.The bonds sold for a total of $758,200. In addition, Red Robin incurred $21,933 of bond issuecosts.There is not a beneficial conversion option with these bonds.An amortization table is included in the attachment:FaceYearsBond AmortizationCompounding Periods/YearAnnual Stated RatePurchase priceStated interestPeriodsEffective interest8/31/20222/28/20238/31/20232/28/20248/31/20242/28/20258/31/20252/28/20268/31/20262/28/20278/31/20272/28/20288/31/20282/28/2029Period Cash Payment Interest Expense8/31/20292/28/20308/31/20302/28/20318/31/20312/28/203228,63828,63828,63828,63828,63828,63828,63828,63828,63828,63828,63828,638725,0001028,63828,63828,63828,63828,63828,63828,63828,63827.90%736,2673.95%203.84%28,25328,23828,22328,20728,19028,17328,15528,13728,11728,09728,07728,05528,03328,01027,98627,96127,93527,90827,88027,851mortization Carrying Amount of Bonds736,267735,882735,483735,068734,637734,190733,725733,243732,742732,222Bond Discount (Premium) Amortization(385)(400)(415)(431)(447)(465)(482)(501)(520)(540)(561)(582)(605)(628)(652)(677)(703)(730)(758)(787)731,682731,121730,539729,934729,306728,654727,978727,275726,545725,787725,000

Bond is an financial instrument which is used to raise funds by the large organizations. Bonds pays…

On March 1 of the current year (2022), Red Robin issued 725, 7.9% bonds with a face value of $1,000 each. The bonds are 10-year bonds and pay interest on August 31 and February 28th of each year. Each bond is convertible into 5 shares of common stock. The bonds sold for a total of $758,200. In addition, Red Robin incurred $21,933 of bond issue costs. There is not a beneficial conversion option with these bonds.

On March 1 of the current year (2022), Red Robin issued 725, 7.9% bonds with a face value of $1,000 each. The bonds are 10-year bonds and pay interest on August 31 and February 28th of each year. Each bond is convertible into 5 shares of common stock. The bonds sold for a total of $758,200. In addition, Red Robin incurred $21,933 of bond issue costs. There is not a beneficial conversion option with these bonds.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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