ONLY D.E On March 1, 2021, your company sold $80,000 of 9%, 8-year bonds when the market rate was7%. These bonds pay interest semi-annually on August 31 and February 28 each year. Yourcompany uses the interest method of amortization. On October 1, 2022, your company boughtback $20,000 of the bonds at 103 plus accrued interest.A.Calculate the selling price of the bonds. Show the time value of money factors youentered into your calculator.В.Prepare an amortization table for the 8 year life of the bond. The table should haveseparate columns for each semiannual period (1 – 16), the beginning balance each period,the amount of the payment each period, the amount of interest each period, the amount ofamortization each period, and the ending balance each period. It would probably be agood idea to use a spreadsheet for this table. Please round all amounts in this table to thenearest PENNY.Prepare journal entries from March 1, 2021, through December 31, 2022 (includingadjusting and reversing entries and the retirement of part of the bonds on October 1,C.2022), assuming your company's year ends on December 31. Put the appropriate datebeside each journal entry.D.Prepare a list of the current liabilities AND THE AMOUNTS from the abovetransactions which should be reported on the balance sheet on December 31, 2021, andon December 31, 2022.E.Prepare a list of the NON current liabilities AND THE AMOUNTS from the abovetransactions which should be reported on the balance sheet on December 31, 2021, andon December 31, 2022.

Bond is an investment security which is issued by large corporation and government organization to…

On March 1, 2021, your company sold $80,000 of 9%, 8-year bonds when the market rate was 7%. These bonds pay interest semi-annually on August 31 and February 28 each year. Your company uses the interest method of amortization. On October 1, 2022, your company bought back $20,000 of the bonds at 103 plus accrued interest.

On March 1, 2021, your company sold $80,000 of 9%, 8-year bonds when the market rate was 7%. These bonds pay interest semi-annually on August 31 and February 28 each year. Your company uses the interest method of amortization. On October 1, 2022, your company bought back $20,000 of the bonds at 103 plus accrued interest.

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter14: Financing Liabilities: Bonds And Long-term Notes Payable

Section: Chapter Questions

Problem 16E

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