Part2: On March 1, 2020, Quinto Mining Inc. issued a $690,000, 8%, three-year bond. Interest is payable semiannually beginning September 1, 2020. 1. Calculate the bond issue price assuming a market...

Part2: On March 1, 2020, Quinto Mining Inc. issued a $690,000, 8%, three-year bond. Interest is payable semiannually beginning September 1, 2020.

1. Calculate the bond issue price assuming a market interest rate of 9.0% on the date of issue

2.
Using the effective interest method, prepare an amortization schedule. (image attached)

3. Record the entries for the issuance of the bond on March 1; the adjusting entry to accrue bond interest and related amortization on April 30, 2020, Quinto’s year-end; and the payment of interest on September 1, 2020.

• Record the issuance of the bond.


• Record accrual of interest on the bond


• Record payment of interest.


• Record the entries for the retirement of 30% of the bonds at 102, on September 1, 2020, after the interest payment.

Extracted text: Period Ending Cash Interest Period Interest Discount Unamortized Carrying Value Paid Expense Amort. Discount Mar. 1/20 Sept. 1/20 Mar. 1/21 Sept. 1/21 Mar. 1/22 Sept. 1/22 Mar. 1/23 Totals $ %24