Chapter 9.6 Project Erickson.xlsx - Long-term Liabilities Issue bonds payable at a discount and amortize bonds using the effective-interest method On

Chapter 9.6 Project Erickson.xlsx - Long-term Liabilities...

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Unformatted text preview: Long-term Liabilities Issue bonds payable at a discount and amortize bonds using the effective-interest method On March 31, 2019, Pearce Corporation issued bonds payable with characteristics given below. The bonds pay in semiannually. Pearce Corporation's year-end is March 31. Bonds payable issued Maturity (years) Stated interest rate Market interest rate $ 580,000 10 6% 10% Use the blue shaded areas on the ENTERANSWERS tab for inputs. Always use cell references and formulas where appropriate to receive full credit. If you copy/paste from the In tab you will be marked wrong. Requirements 1 Using the PV function in Excel, calculate the issue price of the bonds. a. Note that the PMT and FV agruments of the PV function are expected as negative values. Use a value o Type argument of the PV function. 2 Prepare an effective-interest amortization table for the bonds through the first three interest payments. a. Enter all amounts as positive values. Do not use a minus sign or parentheses for any values to be subtr b. Use cell references from prior calculations, if applicable. 3 Journalize Pearce Corporation’s issuance of the bonds on March 31, 2019, and payment of the first semiann amount and amortization of the bond discount on September 30, 2019. a. b. c. d. Explanations are not required. Check your spelling carefully and do not abbreviate. Record debits first, then credits. Exclude explanations from journal entries. Use cell references from prior calculations, if applicable. Saving & Submitting Solution 1 Save file to desktop. a. Create folder on desktop, and label COMPLETED EXCEL PROJECTS b. Save your solution in the folder you just created; add -solution-date to end of file name 2 Upload and submit your file to be graded. a. Navigate back to the activity window - screen where you downloaded the initial spreadsheet b. Click Choose button under step 3; locate the file you just saved and click Open c. Click Upload button under step 3 d. Click Submit button under step 4 Viewing Results 1 Click on Results tab in MyAccountingLab 2 Click on the Assignment you were working on 3 Click on Project link; this will bring up your Score Card 4 Within Score Card window, click on Live Comments Report (lower right) to download spreadsheet with fee e bonds using the effective-interest method bonds payable with characteristics given below. The bonds pay interest March 31. ERS tab for inputs. e appropriate to receive full credit. If you copy/paste from the Instruction he issue price of the bonds. s of the PV function are expected as negative values. Use a value of 0 for the table for the bonds through the first three interest payments. Do not use a minus sign or parentheses for any values to be subtracted. ations, if applicable. of the bonds on March 31, 2019, and payment of the first semiannual interest ount on September 30, 2019. not abbreviate. ude explanations from journal entries. ations, if applicable. COMPLETED EXCEL PROJECTS just created; add -solution-date to end of file name w - screen where you downloaded the initial spreadsheet cate the file you just saved and click Open r Score Card omments Report (lower right) to download spreadsheet with feedback 1. Using the PV function in Excel, calculate the issue price of the bonds. (Always use cell references and formulas where appropriate to receive full credit. If you copy/paste from the Instruction tab you will be marked wrong.) Issue price $ 435,438 2. Prepare an effective-interest amortization table for the bonds through the first three interest payments. (Always use cell references and formulas where appropriate to receive full credit. If you copy/paste from the Instruction tab you will be marked wrong.) Semiannual Interest Date Mar. 31, 2019 Sep. 30, 2019 Mar. 31, 2020 Sep. 30, 2020 Interest Payment $ $ $ Interest Expense 17,400 $ 17,400 $ 17,400 $ 21,771.92 $ 21,991 $ 22,220 $ Discount Amortization Discount Account Balance $ 4,372 $ 4,591 $ 4,820 $ 144,562 140,190 135,599 130,779 3. Journalize Pearce Corporation’s issuance of the bonds on March 31, 2019, and payment of the first semiannual interest amount and amortization of the bond discount on September 30, 2019. (Always use cell references and formulas where appropriate to receive full credit. If you copy/paste from the Instruction tab you will be marked wrong.) Date Mar. 31, 2019 Sep. 30, 2019 Accounts Cash Discounts on Bonds Payable Bonds Payable Interest Expense Discounts on Bonds Payable Cash Debit 435,438 144,562 Credit 580,000 21,772 4,372 17,400 If you copy/paste from the st three interest payments. If you copy/paste from the Bond Carrying Amount $ $ $ $ 435,438 439,810 444,401 449,221 d payment of the first ber 30, 2019. If you copy/paste from the ...
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