On October 1, 2023, Dejour Energy Inc. issued a $680,000, 7%, seven-year bond. Interest is to be

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On October 1, 2023, Dejour Energy Inc. issued a $680,000, 7%, seven-year bond. Interest is to be paid annually each October 1.



Required


1. Calculate the issue price of the bond assuming a market interest rate of 8% on the date of the bond issue.


2. Using the effective interest method, prepare an amortization schedule similar to Exhibit 14.11.


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Fundamental Accounting Principles Volume 2

ISBN: 9781260881332

17th Canadian Edition

Authors: Kermit D. Larson, Heidi Dieckmann, John Harris

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