Part2: On March 1, 2020, Quinto Mining Inc. issued a $690,000, 8%, three-year bond. Interest is payable semiannually beginning September 1, 2020. 1. Calculate the bond issue price assuming a market interest rate of 9.0% on the date of issue 2. Using the effective interest method, prepare an amortization schedule. (image attached) 3. Record the entries for the issuance of the bond on March 1; the adjusting entry to accrue bond interest and related amortization on April 30, 2020, Quinto’s year-end; and the payment of interest on September 1, 2020. Record the issuance of the bond. Record accrual of interest on the bond Record payment of interest. Record the entries for the retirement of 30% of the bonds at 102, on September 1, 2020, after the interest payment.
Part2: On March 1, 2020, Quinto Mining Inc. issued a $690,000, 8%, three-year bond. Interest is payable semiannually beginning September 1, 2020. 1. Calculate the bond issue price assuming a market interest rate of 9.0% on the date of issue 2. Using the effective interest method, prepare an amortization schedule. (image attached) 3. Record the entries for the issuance of the bond on March 1; the adjusting entry to accrue bond interest and related amortization on April 30, 2020, Quinto’s year-end; and the payment of interest on September 1, 2020. Record the issuance of the bond. Record accrual of interest on the bond Record payment of interest. Record the entries for the retirement of 30% of the bonds at 102, on September 1, 2020, after the interest payment.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Part2: On March 1, 2020, Quinto Mining Inc. issued a $690,000, 8%, three-year bond. Interest is payable semiannually beginning September 1, 2020.
1. Calculate the
2. Using the effective interest method, prepare an amortization schedule. (image attached)
3. Record the entries for the issuance of the bond on March 1; the
- Record the issuance of the bond.
- Record accrual of interest on the bond
- Record payment of interest.
- Record the entries for the retirement of 30% of the bonds at 102, on September 1, 2020, after the interest payment.
Transcribed Image Text:Period
Ending
Cash Interest Period Interest
Discount
Unamortized
Carrying Value
Paid
Expense
Amort.
Discount
Mar. 1/20
Sept. 1/20
Mar. 1/21
Sept. 1/21
Mar. 1/22
Sept. 1/22
Mar. 1/23
Totals
$
%24
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 4 steps with 2 images
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education