70.2K

Verified Solution

Link Copied!

Bond Issue B

Period Ending	(A) Cash Interest Paid $490,000.0 7.0% 3/12					(B) Period Interest Expense (E) 7.5% 3/12					(C) Amort. (A) (B)					(D) Unamortized Balance					(E) Carrying Value $490,000 (D)
Apr. 1/18																	$	17,128				$	472,872
Jul. 1/18		$	8,575				$	8,866				$	291					16,837					473,163
Apr. 1/26			8,575					9,093					518					4,511					485,489
Jul. 1/26			8,575					9,103					528					3,983					486,017
Oct. 1/26			8,575					9,113					538					3,445					486,555
Jan. 1/27			8,575					9,123					548					2,897					487,103
Apr. 1/27			8,575					9,133					558					2,339					487,661
Jul. 1/27			8,575					9,144					569					1,770					488,230
Oct. 1/27			8,575					9,154					579					1,191					488,809
Jan. 1/28			8,575					9,165					590					601					489,399
Apr. 1/28			8,575					9,176	*				601					0					490,000
Totals		$	343,000				$	360,128				$	17,128

f. Show how bond B would appear on the balance sheet under non-current liabilities at July 31, 2026. Balance Sheet (Partial) Non-current liablities Bonds payable, 7.5%, due April 1, 2028 $ Less: Discount on bonds payable 490,000 g. Calculate the bond B interest expense that would appear on the income statement for the year ended July 31, 2027. Total bond interest expense h. Independent of (a) through (g), assume that bond B issues was retired on December 1, 2027, at 97. Record the entries. View transaction list X 1 Record the interest paid on bonds. 2. Record the retired bonds. Credit Note : = journal entry has been entered Record entry Clear entry View general journal

Answer & Explanation Solved by verified expert

See Answer