On Oct 1, 2020, JetCom Inventors Inc. issued a $600,000, 8% , five-year bond. Interest is...

 

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On Oct 1, 2020, JetCom Inventors Inc. issued a $600,000, 8% , five-year bond. Interest is to be paid semiannually beginning April 1, 2021. The bond issue price assuming a market interest rate of 7% on the date of issue and the company received $778,613 Required: A. Record the following entries: • • . Issuance of the bonds on Oct 1, 2020 Year end adjusting entry on December 31, 2020 Payment of interest on April 1, 2021 B. Using the effective interest method, prepare an amortization schedule. On Oct 1, 2020, JetCom Inventors Inc. issued a $600,000, 8% , five-year bond. Interest is to be paid semiannually beginning April 1, 2021. The bond issue price assuming a market interest rate of 7% on the date of issue and the company received $778,613 Required: A. Record the following entries: • • . Issuance of the bonds on Oct 1, 2020 Year end adjusting entry on December 31, 2020 Payment of interest on April 1, 2021 B. Using the effective interest method, prepare an amortization schedule.

Answer rating: 100% (QA)

1Oct20 31Dec20 1Apr21 1Apr21 Cash Financia... View the full answer