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
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
icon
Related questions
Question
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
Expert Solution
steps

Step by step

Solved in 2 steps

Blurred answer
Similar questions
Recommended textbooks for you
Intermediate Accounting: Reporting And Analysis
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:
9781337788281
Author:
James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:
Cengage Learning
Principles of Accounting Volume 1
Principles of Accounting Volume 1
Accounting
ISBN:
9781947172685
Author:
OpenStax
Publisher:
OpenStax College
CONCEPTS IN FED.TAX., 2020-W/ACCESS
CONCEPTS IN FED.TAX., 2020-W/ACCESS
Accounting
ISBN:
9780357110362
Author:
Murphy
Publisher:
CENGAGE L