Mo's Motor Corp. issued $420,000 of 7%, 5-year bonds on April 1, 2021. Interest is...
80.2K
Verified Solution
Link Copied!
Question
Accounting
Mo's Motor Corp. issued $420,000 of 7%, 5-year bonds on April 1, 2021. Interest is payable semi-annually on April 1 and October 1. On April 1, 2023, immediately after making and recording the semi-annual interest payment, Mo's redeemed the bonds. Below is a partial amortization schedule for the first few years of the bond issue. Mo's Motor Corp. Bond Discount Amortization Schedule Interest Payment Interest Expense Amortization Interest Period 01-Apr. 2021 01-Oct. 2021 01-Apr. 2022 01-Oct. 2022 01-Apr. 2023 $14,700.00 14,700.00 14.700.00 14.700.00 $16,118.68 16,175.43 16.234.45 16,295.83 $1,418.68 1,475.43 1,534.45 1,595.83 Bond Amortized Cost $402.967.12 404.385.80 405,861.23 407,395.68 408.991.51 Were the bonds issued at a discount or at a premium? Question Part Score What will be the bond's amortized cost at the maturity date? Amortized cost $ e Textbook and Media Prepare the journal entry to record the redemption of the bonds assuming they were redeemed at 100. (Credit account titles are automatically indented when the amount is entered. Do notIndent manually. If no entry is required, select "No Entry"for the account tities and enter for the amounts. Round answers to 2 decimal places, eg. 5,275.25.) Date Account Titles and Explanation Debit Credit Apr. 1, 2023 e Textbook and Media Prepare the journal entry to record the redemption of the bonds assuming they were redeemed at 96. (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 Ofor the amounts. Round answers to 2 decimal places, eg. 5,275.25.) Account Titles and Explanation Debit Credit Date Apr. 1, 2023 e Textbook and Media
Answer & Explanation
Solved by verified expert
Get Answers to Unlimited Questions
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
Membership Benefits:
Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!