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Current Attempt in Progress GRS Ltd. sold $6,350,000 of 10% 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 12%. GRS's fiscal year-end was February 28, and the company followed IFRS. On June 1, 2024, GRS bought back $2.350,000 worth of bonds for $2,250,000 plus accrued interest. Your Answer Correct Answer (Used) 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, eg. 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 Cash Interest Expense Bonds Payable Debit Credit 5,790.166 158,750 5,631,416

Current Attempt in Progress GRS Ltd. sold $6,350,000 of 10% 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 12%. GRS's fiscal year-end was February 28, and the company followed IFRS. On June 1, 2024, GRS bought back $2.350,000 worth of bonds for $2,250,000 plus accrued interest. Your Answer Correct Answer (Used) 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, eg. 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 Cash Interest Expense Bonds Payable Debit Credit 5,790.166 158,750 5,631,416

Intermediate Accounting: Reporting And Analysis
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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Current Attempt in Progress GRS Ltd. sold $6,350,000 of 10% 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 12%. GRS's fiscal year-end was February 28, and the company followed IFRS. On June 1, 2024, GRS bought back $2.350,000 worth of bonds for $2,250,000 plus accrued interest. Your Answer Correct Answer (Used) 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, eg. 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 Cash Interest Expense Bonds Payable Debit Credit 5,790.166 158,750 5,631,416
Transcribed Image Text:Current Attempt in Progress GRS Ltd. sold $6,350,000 of 10% 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 12%. GRS's fiscal year-end was February 28, and the company followed IFRS. On June 1, 2024, GRS bought back $2.350,000 worth of bonds for $2,250,000 plus accrued interest. Your Answer Correct Answer (Used) 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, eg. 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 Cash Interest Expense Bonds Payable Debit Credit 5,790.166 158,750 5,631,416
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