Mo’s Motor Corp. issued $230,000 of 8%, 5-year bonds on April 1, 2021. Interest is payable...

Mo’s Motor Corp. issued $230,000 of 8%, 5-year bonds on April 1, 2021. Interest is payable semi-annually on April 1 and October 1. On April 1, 2023, immediately after making and recording the semi-annual interest payment, Mo’s redeemed the bonds. Below is a partial amortization schedule for the first few years of the bond issue.

Mo's Motor Corp. Bond Discount Amortization Schedule
Interest Period		Interest Payment	Interest Expense	Amortization	Bond Amortized Cost
01-Apr.	2021				$220,900.37
01-Oct.	2021	$9,200.00	$9,940.52	$740.52	221,640.89
01-Apr.	2022	9,200.00	9,973.84	773.84	222,414.73
01-Oct.	2022	9,200.00	10,008.66	808.66	223,223.39
01-Apr.	2023	9,200.00	10,045.05	845.05	224,068.44

1) Were the bonds issued at a discount or at a premium?

The bonds were issued at a

2)What is the bond’s face value?

Face value

$

3) Prepare the journal entry to record the payment of interest on Oct 1, 2021? (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 0 for the amounts. Round answers to 2 decimal places, e.g. 5,275.25.)

Date	Account Titles and Explanation	Debit	Credit
Oct. 1, 2021

4) Prepare the journal entry to record the redemption of the bonds assuming they were redeemed at 100. (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 0 for the amounts. Round answers to 2 decimal places, e.g. 5,275.25.)

Date	Account Titles and Explanation	Debit	Credit
Apr. 1, 2023

5)

Prepare the journal entry to record the redemption of the bonds assuming they were redeemed at 96. (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 0 for the amounts. Round answers to 2 decimal places, e.g. 5,275.25.)

Date	Account Titles and Explanation	Debit	Credit
Apr. 1, 2023

Expert Solution

ekkarill92 answered 2 years ago

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