On June 1, 2023, JetCom Inventors Inc. issued a $490,000 7 % , three-year bond. Interest...

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On June 1, 2023, JetCom Inventors Inc. issued a $490,000 7 % , three-year bond. Interest is to be paid semiannually beginning December 1, 2023. Required: a. Calculate the issue price of the bond assuming a market interest rate of 8%. (Do not round intermediate calculations. Round the final answer to the nearest whole dollar.) Issue price of the bond Period Ending b. Using the effective interest method, prepare an amortization schedule. (Do not round intermediate calculations. Round the final answers to the nearest whole dollar. Enter all the amounts as positive values.) June 1/23 Dec. 1/23 June 1/24 Dec. 1/24 June 1/25 Dec. 1/25 June 1/26 Totals $ Cash Period Interest Discount Unamortized Carrying Interest Paid Expense Amort. Discount Value $ View transaction list $ 477,157 1 Record issued bond at discount. 2 Record payment of interest. Part 1 Prepare journal entries to the following. (Do not round intermediate calculations. Round the final answers to the nearest whole dollar.) 3 Record accrual of interest. a. Issuance of the bonds on June 1, 2023 b. Payment of interest on December 1, 2023 c. Adjusting entry to accrue bond interest and discount amortization on January 31, 2024 d. Payment of interest on June 1, 2024 Assume JetCom Inventors Inc. has a January 31 year-end. 4 Record payment of interest. Record entry 0 $ Non-current liabilities Note : journal entry has been entered 0 Clear entry 0 Balance Sheet (Partial) 0 X Credit Part 2 Show how the bonds will appear on the balance sheet under non-current liabilities at January 31, 2025. (Do not round intermediate calculations. Round the final answers to the nearest whole dollar.) View general journal On June 1, 2023, JetCom Inventors Inc. issued a $490,000 7 % , three-year bond. Interest is to be paid semiannually beginning December 1, 2023. Required: a. Calculate the issue price of the bond assuming a market interest rate of 8%. (Do not round intermediate calculations. Round the final answer to the nearest whole dollar.) Issue price of the bond Period Ending b. Using the effective interest method, prepare an amortization schedule. (Do not round intermediate calculations. Round the final answers to the nearest whole dollar. Enter all the amounts as positive values.) June 1/23 Dec. 1/23 June 1/24 Dec. 1/24 June 1/25 Dec. 1/25 June 1/26 Totals $ Cash Period Interest Discount Unamortized Carrying Interest Paid Expense Amort. Discount Value $ View transaction list $ 477,157 1 Record issued bond at discount. 2 Record payment of interest. Part 1 Prepare journal entries to the following. (Do not round intermediate calculations. Round the final answers to the nearest whole dollar.) 3 Record accrual of interest. a. Issuance of the bonds on June 1, 2023 b. Payment of interest on December 1, 2023 c. Adjusting entry to accrue bond interest and discount amortization on January 31, 2024 d. Payment of interest on June 1, 2024 Assume JetCom Inventors Inc. has a January 31 year-end. 4 Record payment of interest. Record entry 0 $ Non-current liabilities Note : journal entry has been entered 0 Clear entry 0 Balance Sheet (Partial) 0 X Credit Part 2 Show how the bonds will appear on the balance sheet under non-current liabilities at January 31, 2025. (Do not round intermediate calculations. Round the final answers to the nearest whole dollar.) View general journal

Answer rating: 100% (QA)

a To calculate the issue price of the bond we need to calculate the present value of the bonds futur... View the full answer