Using 1. a financial calculator, or 2. Excel function PV, calculate the issue price of the bonds and prepare the entry for the issuance of the bonds. Hint: Use the account Interest Expense in your entry). (Round answer to O 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 O for the amounts. List all debit entries before credit entries.) Account Titles and Explanation eTextbook and Media Debit Credit Using 1. a financial calculator, or 2. Excel function PV, calculate the carrying amount of the bond on September 1, 2023. Use the change in the carrying amount as the amount of amortization of the discount to be recorded in the entry for the first payment. (Round answer to 0 decimal places, e.g. 5.275.)

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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WBE Ltd. sold $7,660,000 of 12% bonds, which were dated March 1, 2023, on June 1, 2023. The bonds paid interest on September 1
and March 1 of each year. The bonds' maturity date was March 1, 2033, and the bonds were issued to yield 14%. WBE's fiscal year-end
was February 28, and the company followed IFRS.
On June 1, 2024, WBE bought back $3,660,000 worth of bonds for $3,560,000 plus accrued interest.
Using 1. a financial calculator, or 2. Excel function PV, calculate the issue price of the bonds and prepare the entry for the issuance
of the bonds. Hint: Use the account Interest Expense in your entry). (Round answer to O 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 O for the amounts. List all debit entries before credit entries.)
Account Titles and Explanation
eTextbook and Media
Debit
Carrying amount of the bond $
Credit
Using 1. a financial calculator, or 2. Excel function PV, calculate the carrying amount of the bond on September 1, 2023. Use the
change in the carrying amount as the amount of amortization of the discount to be recorded in the entry for the first payment.
(Round answer to O decimal places, e.g. 5,275.)
Transcribed Image Text:WBE Ltd. sold $7,660,000 of 12% bonds, which were dated March 1, 2023, on June 1, 2023. The bonds paid interest on September 1 and March 1 of each year. The bonds' maturity date was March 1, 2033, and the bonds were issued to yield 14%. WBE's fiscal year-end was February 28, and the company followed IFRS. On June 1, 2024, WBE bought back $3,660,000 worth of bonds for $3,560,000 plus accrued interest. Using 1. a financial calculator, or 2. Excel function PV, calculate the issue price of the bonds and prepare the entry for the issuance of the bonds. Hint: Use the account Interest Expense in your entry). (Round answer to O 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 O for the amounts. List all debit entries before credit entries.) Account Titles and Explanation eTextbook and Media Debit Carrying amount of the bond $ Credit Using 1. a financial calculator, or 2. Excel function PV, calculate the carrying amount of the bond on September 1, 2023. Use the change in the carrying amount as the amount of amortization of the discount to be recorded in the entry for the first payment. (Round answer to O decimal places, e.g. 5,275.)
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