Nguyen Corporation issued a $8,000,000, 6 percent bond on August 1, 2017. The market interest rate...

  

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Nguyen Corporation issued a $8,000,000, 6 percent bond on August 1, 2017. The market interest rate was 8 percent on that date and the bond matures in eight years. Interest on these bonds is payable annually on August 1. The company uses the effective interest method and its fiscal year ends on November 30. Use Table 9C.1, Table 9C.2 Required: 1. Compute the issue price of the bond on August 1, 2017. (Do not round intermediate calculations. Round the final answer to the nearest whole dollar.) Bond issue price 2. Prepare the journal entries on November 30, 2017, and on August 1, 2018, to record interest expense. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Do not round intermediate calculations. Round the final answers to the nearest whole dollar.) View transaction list Journal entry worksheet 1 2 > Record the accrual of interest on bonds. Note: Enter debits before credits. Date General Journal Debit Credit November 30, 2017 Record entry Clear entry View general journal Nguyen Corporation issued a $8,000,000, 6 percent bond on August 1, 2017. The market interest rate was 8 percent on that date and the bond matures in eight years. Interest on these bonds is payable annually on August 1. The company uses the effective interest method and its fiscal year ends on November 30. Use Table 9C.1, Table 9C.2 Required: 1. Compute the issue price of the bond on August 1, 2017. (Do not round intermediate calculations. Round the final answer to the nearest whole dollar.) Bond issue price 2. Prepare the journal entries on November 30, 2017, and on August 1, 2018, to record interest expense. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Do not round intermediate calculations. Round the final answers to the nearest whole dollar.) View transaction list Journal entry worksheet 1 2 > Record the accrual of interest on bonds. Note: Enter debits before credits. Date General Journal Debit Credit November 30, 2017 Record entry Clear entry View general journal

Answer rating: 100% (QA)

Solved 1 Issue price of the bondPresent value of interest paymentPresent value of principal Discount ... View the full answer