Question

need answer for below 4 and 5 and information as fellow: 4.   Golf World decided to...

need answer for below 4 and 5 and information as fellow:

4.   Golf World decided to retire the bonds early on January 1, 2020, at 105. Prepare the necessary journal entries to record this early retirement.

5.   Prove your numbers provided in the problem are correct by showing the table values you would have used to calculate this manually. This is how you will “show your work,” proving the Excel formulas were used correctly.

Golf World, Inc., issued $320,000 par value 9% five-year bonds dated January 1,

2018 that will pay interest semiannually on June 30 and December 31. These bonds were issued

at $332,989. The annual market rate is 8% on the issue date.

Business   Accounting   
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Answer #1
Amort chart
Date cash int Int expense Premium Unamortized Carrrying
Amortized Premium Value of bonds
01.01.18 12989 332989
30.06.18 14400 13320 1080 11909 331909
31.12.18 14400 13276 1124 10785 330785
30.06.19 14400 13231 1169 9616 329616
31.12.19 14400 13185 1215 8401 328401
Redemption value (3200*105) 336000
Less: Carrying value of bonds 328401
Loss on redemption 7599
Journal entry:
Bonds payable 320000
Premium on bonds payable Dr. 8401
Loss on retirement of bonds 7599
      Cash account 336000
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